[幼儿教育]cost12ism.doc

CHAPTER 4JOB COSTING 4-1Cost poola grouping of individual cost items.Cost tracingthe assigning of direct costs to the chosen cost object.Cost allocationthe assigning of indirect costs to the chosen cost object.Cost-allocation basea factor that links in a systematic way an indirect cost or group of indirect costs to a cost object.4-2In a job-costing system, costs are assigned to a distinct unit, batch, or lot of a product or service. In a process-costing system, the cost of a product or service is obtained by using broad averages to assign costs to masses of identical or similar units.4-3An advertising campaign for Pepsi is likely to be very specific to that individual client. Job costing enables all the specific aspects of each job to be identified. In contrast, the processing of checking account withdrawals is similar for many customers. Here, process costing can be used to compute the cost of each checking account withdrawal.4-4The seven steps in job costing are: (1) identify the job that is the chosen cost object, (2) identify the direct costs of the job, (3) select the cost-allocation bases to use for allocating indirect costs to the job, (4) identify the indirect costs associated with each cost-allocation base, (5) compute the rate per unit of each cost-allocation base used to allocate indirect costs to the job, (6) compute the indirect costs allocated to the job, and (7) compute the total cost of the job by adding all direct and indirect costs assigned to the job.4-5Two major cost objects that managers focus on in companies using job costing are (1) products or jobs, and (2) responsibility centers or departments.4-6Three major source documents used in job-costing systems are (1) job cost record or job cost sheet, a document that records and accumulates all costs assigned to a specific job, starting when work begins (2) materials requisition record, a document that contains information about the cost of direct materials used on a specific job and in a specific department; and (3) labor-time record, a document that contains information about the labor time used on a specific job and in a specific department.4-7The main concern with the source documents of job cost records is the accuracy of the records. Problems occurring in this area include incorrect recording of quantity or dollar amounts, materials recorded on one job being “borrowed” and used on other jobs, and erroneous job numbers being assigned to materials or labor inputs.4-8Two reasons for using an annual budget period area.The numerator reasonthe longer the time period, the less the influence of seasonal patterns, andb. The denominator reasonthe longer the time period, the less the effect of variations in output levels on the allocation of fixed costs.4-9Actual costing and normal costing differ in their use of actual or budgeted indirect cost rates:ActualCostingNormalCostingDirect-cost ratesIndirect-cost ratesActual ratesActual ratesActual ratesBudgeted ratesEach costing method uses the actual quantity of the direct-cost input and the actual quantity of the cost-allocation base.4-10A house construction firm can use job cost information (a) to determine the profitability of individual jobs, (b) to assist in bidding on future jobs, and (c) to evaluate professionals who are in charge of managing individual jobs.4-11The statement is false. In a normal costing system, the Manufacturing Overhead Control account will not, in general, equal the amounts in the Manufacturing Overhead Allocated account. The Manufacturing Overhead Control account aggregates the actual overhead costs incurred while Manufacturing Overhead Allocated allocates overhead costs to jobs on the basis of a budgeted rate times the actual quantity of the cost-allocation base.Underallocation or overallocation of indirect (overhead) costs can arise because of (a) the Numerator reasonthe actual overhead costs differ from the budgeted overhead costs, and (b) the Denominator reasonthe actual quantity used of the allocation base differs from the budgeted quantity.4-12Debit entries to Work-in-Process Control represent increases in work in process. Examples of debit entries under normal costing are (a) direct materials used (credit to Materials Control), (b) direct manufacturing labor billed to job (credit to Wages Payable Control), and (c) manufacturing overhead allocated to job (credit to Manufacturing Overhead Allocated).4-13Alternative ways to make end-of-period adjustments for underallocated or overallocated overhead are as follows:(i)Proration based on the total amount of indirect costs allocated (before proration) in the ending balances of work in process, finished goods, and cost of goods sold.(ii)Proration based on total ending balances (before proration) in work in process, finished goods, and cost of goods sold.(iii) Year-end write-off to Cost of Goods Sold.(iv) Restatement of all overhead entries using actual indirect cost rates rather than budgeted indirect cost rates.4-14A company might use budgeted costs rather than actual costs to compute direct labor rates because it may be difficult to trace direct labor costs to jobs as they are completed (for example, because bonuses are only known at the end of the year).4-15Modern technology such as electronic data interchange (EDI) is helpful to managers because it provides them with quick and accurate product-cost information that facilitates the management and control of jobs.4-16 (10 min) Job order costing, process costing. a. Job costingl.Job costingb. Process costingm.Process costingc. Job costingn.Job costingd. Process costingo.Job costinge. Job costingp.Job costingf. Process costingq.Job costingg. Job costingr.Process costingh. Job costing (but some process costing)s.Job costingi. Process costingt.Process costingj. Process costingu.Job costingk. Job costing4-17(20 min.)Actual costing, normal costing, accounting for manufacturing overhead.1.= 1.75 or 175%= 1.9 or 190%2.Costs of Job 626 under actual and normal costing follow:ActualNormalCostingCostingDirect materials$ 40,000$ 40,000Direct manufacturing labor costs30,00030,000Manufacturing overhead costs $30,000 1.90; $30,000 1.75 57,000 52,500Total manufacturing costs of Job 626$127,000$122,5003.= =$980,000 1.75=$1,715,000= =$1,862,000 - $1,715,000 = $147,000There is no under- or overallocated overhead under actual costing because overhead is allocated under actual costing by multiplying actual manufacturing labor costs and the actual manufacturing overhead rate. This, of course equals the actual manufacturing overhead costs. All actual overhead costs are allocated to products. Hence, there is no under- or overallocatead overhead.4-18(20 -30 min.) Job costing, normal and actual costing.1.= = =$50 per direct labor-hour= = =$42 per direct labor-hourThese rates differ because both the numerator and the denominator in the two calculations are differentone based on budgeted numbers and the other based on actual numbers.2a.Laguna ModelMission ModelNormal costingDirect costsDirect materialsDirect laborIndirect costsAssembly support ($50 900; $50 1,010)Total costs$106,450 36,276 142,726 45,000$187,726$127,604 41,410 169,014 50,500$219,5142b.Actual costingDirect costsDirect materialsDirect laborIndirect costsAssembly support ($42 900; $42 1,010)Total costs$106,450 36,276 142,726 37,800$180,526$127,604 41,410 169,014 42,420$211,4343.Normal costing enables Anderson to report a job cost as soon as the job is completed, assuming that both the direct materials and direct labor costs are known at the time of use. Once the 900 direct labor-hours are known for the Laguna Model (June 2007), Anderson can compute the $187,726 cost figure using normal costing. Anderson can use this information to manage the costs of the Laguna Model job as well as to bid on similar jobs later in the year. In contrast, Anderson has to wait until the December 2007 year-end to compute the $180,526 cost of the Laguna Model using actual costing.Although not required, the following overview diagram summarizes Anderson Constructions job-costing system.4-19(10 min.)Budgeted manufacturing overhead rate, allocated manufacturing overhead. 1.Budgeted manufacturing overhead rate = = = $15/machine-hour2.Manufacturing overhead allocated = Actual machine-hours Budgeted manufacturing overhead rate = 195,000 $15 = $2,925,0003.Since manufacturing overhead allocated is greater than the actual manufacturing overhead costs, Waheed overallocated manufacturing overhead:Manufacturing overhead allocated$2,925,000Actual manufacturing overhead costs 2,910,000Overallocated manufacturing overhead$ 15,0004-20(20-30 min.)Job costing, accounting for manufacturing overhead, budgeted rates.1.An overview of the product costing system isBudgeted manufacturing overhead divided by allocation base:Machining overhead = $36 per machine-hourAssembly overhead: = 180% of direct manuf. labor costs2.Machining department, 2,000 hours $36$72,000Assembly department, 180% $15,000 27,000Total manufacturing overhead allocated to Job 494$99,0003.MachiningAssemblyActual manufacturing overhead$2,100,000$ 3,700,000Manufacturing overhead allocated,55,000 $361,980,000 180% $2,200,000 3,960,000Underallocated (Overallocated)$ 120,000$ (260,000)4-21 (20-25 min.) Job costing, consulting firm.1.Budgeted indirect-cost rate = $13,000,000 $5,000,000 = 260% of professional labor costs2. At the budgeted revenues of $20,000,000, Taylors operating income of $2,000,000 equals 10% of revenues.Markup rate = $20,000,000 $5,000,000 = 400% of direct professional labor costs3.Budgeted costsDirect costs:Director, $200 3$ 600Partner, $100 161,600Associate, $50 402,000Assistant, $30 160 4,800$ 9,000Indirect costs:Consulting support, 260% $9,000 23,400Total costs$32,400As calculated in requirement 2, the bid price to earn a 10% income-to-revenue margin is 400% of direct professional costs. Therefore, Taylor should bid 4 $9,000 = $36,000 for the Red Rooster job. Bid price to earn target operating income-to-revenue margin of 10% can also be calculated as follows:Let R = revenue to earn target income R 0.10R = $32,4000.90R = $32,400R = $32,400 0.90 = $36,000or, Direct costs $ 9,000 Indirect costs 23,400 Profit (0.40 9,000) 3,600 Bid price$36,0004-22(1520 min.)Service industry, time period used to compute indirect cost rates.1.JanMarchAprilJuneJulySeptOctDecTotalDirect labor costs$400,000$280,000$250,000$270,000$1,200,000Variable costs as percentage of direct labor costs 90% 60% 60% 60%Variable overhead costs (Percentage direct labor costs)$360,000$168,000$150,000$162,000$ 840,000Fixed overhead costs 300,000 300,000 300,000 300,000 1,200,000Total overhead costs$660,000$468,000$450,000$462,000$2,040,000Total overhead costs as a percentage of direct labor costs 165% 167% 180% 171% 170%Budgeted Overhead Rate UsedJob 332JanMarch RateJulySept RateAverage Yearly RateDirect materials$10,000$10,000$10,000Direct labor costs 6,000 6,000 6,000Overhead allocated (variable + fixed) (165%; 180%; 170% of $6,000) 9,900 10,800 10,200Full cost of Job 332$25,900$26,800$26,200(a) The full cost of Job 332, using the budgeted overhead rate of 165% for JanuaryMarch, is $25,900.(b) The full cost of Job 332, using the budgeted overhead rate of 180% for JulySeptember, is $26,800.(c) The full cost of Job 332, using the annual budgeted overhead rate of 170%, is $26,200.2.Budgeted fixed overhead rate based on annual fixed overhead costs and annual direct labor costs = $1,200,000 $1,200,000 = 100%Budgeted Variable Overhead Rate UsedJob 332JanuaryMarch rateJulySept rateDirect materials$10,000$10,000Direct labor costs 6,000 6,000Variable overhead allocated (90%; 60%; of $6,000) 5,400 3,600Fixed overhead allocated (100% of $6,000) 6,000 6,000Full cost of Job 332$27,400$25,600(a) The full cost of Job 332, using the budgeted variable overhead rate of 90% for JanuaryMarch and an annual fixed overhead rate of 100%, is $27,400.(b) The full cost of Job 332, using the budgeted variable overhead rate of 60% for JulySeptember and an annual fixed overhead rate of 100%, is $25,600.3.If Printers, Inc. sets prices at a markup of costs, then prices based on costs calculated as in Requirement 2 (rather than as in Requirement 1) would be more effective in deterring clients from sending in last-minute, congestion-causing orders in the JanuaryMarch time frame. In this calculation, more variable manufacturing overhead costs are allocated to jobs in the first quarter, reflecting the larger costs of that quarter caused by higher overtime and facility and machine maintenance. This method better captures the cost of congestion during the first quarter.4-23(1015 min.) Accounting for manufacturing overhead.1.Budgeted manufacturing overhead rate= = $35 per machine-hour2.Work-in-Process Control6,825,000 Manufacturing Overhead Allocated6,825,000(195,000 machine-hours $35 per machine-hour = $6,825,000)3.$6,825,000 $6,800,000 = $25,000 overallocated, an insignificant amount.Manufacturing Overhead Allocated6,825,000 Manufacturing Department Overhead Control6,800,000 Cost of Goods Sold25,0004-24(35-45 min.) Job costing, journal entries.Some instructors may also want to assign Exercise 4-25. It demonstrates the relationships of the general ledger to the underlying subsidiary ledgers and source documents.1. An overview of the product costing system is:2. & 3.This answer assumes COGS given of $4,020 does not include the writeoff of overallocated manufacturing overhead.2.(1) Materials Control Accounts Payable Control800800(2)Work-in-Process Control Materials Control710 710(3)Manufacturing Overhead Control Materials Control100 100(4)Work-in-Process ControlManufacturing Overhead Control Wages Payable Control1,3009002,200(5)Manufacturing Overhead Control Accumulated Depreciationbuildings and manufacturing equipment 400 400(6)Manufacturing Overhead Control Miscellaneous accounts 550 550(7)Work-in-Process Control Manufacturing Overhead Allocated (1.60 $1,300 = $2,080)2,0802,080(8)Finished Goods Control Work-in-Process Control4,1204,120(9)Accounts Receivable Control (or Cash) Revenues8,0008,000(10)Cost of Goods Sold Finished Goods Control4,0204,020(11)Manufacturing Overhead Allocated Manufacturing Overhead Control Cost of Goods Sold2,0801,9501303.Materials ControlBal. 12/31/2006(1)Purchases100800(2)Issues(3)Issues710100Bal. 12/31/200790Work-in-Process ControlBal. 12/31/2006(2)Direct materials(4)Direct manuf. labor(7)Manuf. overhead allocated607101,3002,080(8)Goods completed4,120Bal. 12/31/200730Finished Goods ControlBal. 12/31/2006(8)Goods completed5004,120(10)Goods sold4,020Bal. 12/31/2007600Cost of Goods Sold(10)Goods sold4,020(11)Adjust for over-allocation130Bal. 12/31/20073,890Manufacturing Overhead Control(3)Indirect materials(4)Indirect manuf. labor(5)Depreciation(6)Miscellaneous100900400 550(11)To close1,950Bal. 0Manufacturing Overhead Allocated(11) To close2,080(7)Manuf. overhead allocated2,080Bal. 04-25(20 min.)Job costing, journal entries, and source documents (continuation of 4-24).The analysis of source documents and subsidiary ledgers follows:1.a.Approved purchase invoiceb. dr. Materials record, “received” columncr. Accounts payable subsidiary ledger, account for creditor2.a.Materials requisition recordb.dr. Job cost recordscr. Materials record, “issued” column3.a.Materials requisition recordb.dr. Department overhead cost records, appropriate columncr. Materials record, “issued” column4.a.Summary of labor-time records or daily time analysis. This summary is sometimes called a labor cost distribution summary.b.dr. Job cost recordsdr. Department overhead cost records, appropriate columns for various classes of indirect laborcr. Wages payable subsidiary ledger5.a.Special authorization from the responsible accounting officerb.dr. Department overhead cost records, appropriate columnscr. Accumulated depreciation subsidiary ledger6.a.Various approved invoices and special autho