Cost Accouning 成本会计 作业课Chapt

1、Chapter 5Job Order CostingQuestions1.The two choices for cost accumulation are the job order and process costing systems. A company should use job order costing when it is necessary and possible to trace costs to products made for individual customers, and when the products made for one customer are

2、 very different from those made for other customers. A process costing system is appropriate for those production environments that make homogeneous products, usually in large quantities, in batch or continuous flow systems. 2.The three valuation methods are actual, normal, and standard costing. In

3、actual costing, only the actual amounts of material, labor, and overhead costs are assigned to production. Normal costing differs from actual costing in that an amount of overhead is applied to products using a predetermined overhead rate rather than the actual amount. Standard costing differs from

4、actual and normal costing in that a per-unit amount (standard) is established for direct material, direct labor and manufacturing overhead. These predetermined amounts are charged to production rather than the actual or normal costs. 3.The principal documents are the material requisition forms, empl

5、oyee time sheets, and job order cost sheets. Material requisition forms are used to initiate the removal of the material from inventory or to acquire material from suppliers. Time sheets are used to track the time of individual employees to specific jobs. The job order cost sheet is used to track th

6、e actual costs of direct material, direct labor, and manufacturing overhead associated with a particular job, and possibly to compare these actual costs to budgeted costs. 4.In a standard costing system, variances identify the areas of efficiency and inefficiency in production operations. Managers,

7、using the concept of management by exception, focus their attention on the significant variances and attempt to determine causes of those variances (both favorable and unfavorable). Additionally, managers will look for interactions between or among the variances. By concentrating on the significant

8、variances, mangers are able to concentrate on the aspects of operations that are “out of control” and try to correct the causes. 5.If normal spoilage is generally anticipated on all jobs in a job order costing system, the estimated overhead used in setting the predetermined overhead rate should incl

9、ude an amount for the net cost of the spoilage. This treatment allows the cost of normal spoilage to be spread over all jobs produced. In contrast, if spoilage is related to a single job, the cost of that spoilage should be assigned to the job that gave rise to the spoilage.6.The job order costing i

10、nformation allows managers to better estimate the costs of producing their products and of serving specific customers. This information can be used to manage costs, identify which customers generate the most profitable business, and set prices for products and services.7.Normal spoilage refers to an

11、 expected reduction in production quantity based on the production technology, quality of material and labor used, and production practices of a company. The quantity of such loss may be established from management or engineering; given cost/benefit analysis, management has generally concluded that

12、a certain level of defects is less expensive than trying to prevent all defects from occurring. Because normal spoilage is to be expected, the most common method of handling it is to include an estimate for the loss in the development of the predetermined overhead rate. Alternatively, abnormal spoil

13、age refers to a quantity of loss above the expected normal loss. Such losses are more likely to be preventable and, thus, need to be brought to managements attention by showing the amount of the loss as a period cost.Exercises8.Two characteristics of Jackson are critical in advising Jackson about a

14、costing system. These characteristics are the expected high volume of sales and the repetitive nature of production implied by the high sales volume. Based on these characteristics, the best recommendation would be to use a process costing system and standard cost valuations.The homogeneous nature o

15、f the product makes the use of job order costing unnecessary (its higher cost is not justified). Standard costing would benefit Jackson because it would help identify inefficiencies in cost management and help Jackson identify ways to reduce production costs. Cost Accounting 3213Randall BastianChapt

16、er 5Homework Solutions9.a.job orderb.job cessd.job cessg.job orderh.job cessj.job orderk.job cess 10.a. Job order cost sheetb.Raw Materials Inventory accountc.Employee time cardd.Work in Process Control account, orFinished Goods Inventory accounte.Fin

17、ished Goods Inventory account, orCost of Goods Sold accountf.Raw Materials Inventory accountg.Manufacturing Overhead Control accounth.Job order cost sheeti.Work in Process accountj.Manufacturing Overhead Control account 11. a.The direct materials charge of $450,000 is higher than theestimate by $200

18、,000. Assuming that there is no error in either the estimated amount or the actual amount, then either the price paid for the materials was substantially higher than expected or the quantity of materials consumed was substantially higher than expected. To begin the validation process, one would exam

19、ine details of the original estimate to identify quantity and prices of materials for this job. The starting point to validate the prices and quantities of materials purchased is to examine vendor invoices billed to the tool company. These invoices will validate the quantities of materials purchased

20、 by the tool company and the unit prices paid by the tool company. Additionally, material requisition forms should be examined to validate the quantity of the purchased materials actually used in production. Next examination of the material cost (material quantity multiplied by material price) on th

21、e job order cost sheet should reconcile to the quantity of materials shown on the material requisition forms.b.The companys behavior is at best questionable. Given that the difference between the actual and estimated direct material cost was likely known long before the bill was delivered to the cus

22、tomer, the company had ample opportunity to advise the customer on the cost over-run. The company should have notified the customer as soon as the facts were known relating to the unexpectedly high cost for direct materials.12.a.Raw Material Inventory92,000Accounts Payable92,000Work in Process Inven

23、tory81,900Raw Material Inventory81,900Work in Process Inventory25,500Cash (1,700 x $15) 25,500Manufacturing Overhead34,350 Cash ($9,000 + $3,600 + $4,750) 17,350Accumulated Depreciation 10,750 Supplies Inventory 6,250Work in Process Inventory34,000Manufacturing Overhead 34,000b.Raw Material = $2,150

24、 + $92,000 $81,900 = $12,250 c.Cost of Goods Manufactured = Beginning WIP + Current period costs Ending WIP = $11,200 + $81,900 + $25,500 + $34,000 - $2,350 = $150,250Unit cost = $150,250 5,000 = $30.05d.Applied OH Actual OH = $34,000 - $34,350 = $350 underapplied 13.a.Raw Material Inventory38,000Ac

25、counts Payable 38,000WIP Job #21722,400WIP Job #218 3,600WIP other jobs26,800Direct Material Inventory 52,800WIP Job #217 5,200WIP Job #218 7,000WIP other jobs 9,800Cash (or Wages Payable) 22,000Manufacturing Overhead110,000Various accounts 110,000WIP Job #21726,000WIP Job #21835,000WIP other jobs49

26、,000Manufacturing Overhead110,000 (Actual rate per DL$ = $110,000 $22,000 = $5) Finished Goods Inventory59,200WIP Inventory Job #217 59,200 ($5,600 + $22,400 + $5,200 + $26,000 = $59,200)Cash79,920Sales 79,920 ($59,200 1.35 = $79,920)Cost of Goods Sold59,200Finished Goods Inventory 59,200b.Ending ba

27、lance in WIP = Beginning balance + Current costs Cost of Job #217 completed = $8,400 + $52,800 + $22,000 + $110,000 - $59,200 = $134,000Ending balance in Job #218 = $2,800 + $3,600 + $7,000 + $35,000 = $48,40014.a.OH rate = $211,200 $192,000 = 110% of direct laborb.Ending WIP Balance: DM $66,300 DL

28、46,800 OH ($46,800 x 1.10) 51,480 Ending balance $164,580c.Cost of goods completed = Beginning balance + Current period costs Cost of jobs completed = $0 + $277,200 + $192,000 + $211,200 $164,580 = $515,82015.a.OH rate = $62,300 7,000 = $8.90 per DLHb.Average DL rate = $87,500 7,000 = $12.50 per DLH

29、c.If workers on the job in ending WIP are assumed to be paid the average DL rate, then the ending WIP balance is: DM $ 20,250 DL (1,850 x $12.50) 23,125 OH (1,850 x $8.90) 16,465 Ending balance $59,840d.Cost of goods completed = Beginning balance + Current period costs Cost of jobs completed = $68,0

30、00 + $130,700 + $87,500 + $62,300 $59,840 = $288,66016.a.CGS is the amount credited to Finished Goods Inventory for the year = $685,000.b.Beg. FG + CGM End. FG = CGS$45,000 + CGM - $42,000 = $685,000CGM + $3,000 = $685,000CGM = $682,000c.Applied OH = $90,000 1.20 = $108,000d.Beg. WIP + DM used + DL

31、+ OH End. WIP = CGM$28,000 + DM + $90,000 + $108,000 - $24,000 = $682,000DM + $202,000 = $682,000DM = $480,000e.Beg. DM + P DM used = End. DM$12,300 + P - $480,000 = $4,100P - $467,700 = $4,100P = $471,80017.a.CGS = .75 x Sales = .75($637,000) = $477,750.b.Beg. FG + CGM End. FG = CGS$68,900 + CGM -

32、$53,600 = $477,750CGM + $15,300 = $477,750CGM = $462,450c.Job B325: Applied OH = 85% of DL$ = .85 (28 x $8.90) = .85 x $249.20 = $211.82Job Q428: Applied OH = 85% of DL$ = .85 (40 x $8.90) = .85 x $356.00 = $302.60d. Job B325 Q428 DM$21,000.00$14,700.00DL 249.20 356.00OH 211.82 302.60$21,461.02$15,3

33、58.6018. Case #1 Case #2 Case #3 Case #4Direct material$ 240 $ 4,400$ 1,850$ 410DL ($190 per hour) 3,800 8,550 6,840 1,520OH ($100 per court hour) 600 4,500 15,000 2,000 Totals$4,640 $17,450$23,690$3,93019.a.Mixing: $240,000 30,000 = $8 per MHPaving: $392,000 14,000 = $28 per DLHb. Mixing: 160 MHs x

34、 $8 =$1,280Paving: 120 DLHs x $28 = 3,360Total overhead applied $4,640c.A plant-wide rate would not have been indicative of the actual cost of each job because the Mixing department is very machine-intensive while the Paving department is very labor-intensive. 20.a.Overhead rate = Budgeted OH Budget

35、ed DL$ $2.20 = $660,000 Budgeted DL$Budgeted DL cost = $660,000 $2.20 Budgeted DL cost = $300,000Overhead rate = $660,000 $300,000 = $2.20 per DL$b.Work in Process Inventory 67,540 Manufacturing Overhead 67,540 ($30,700 x $2.20 = $67,540)c.$2.20 x 23,900 = $52,580d.Beginning balance$ 18,350Direct ma

36、terial 14,800Direct labor 23,900Manufacturing overhead 52,580Ending balance $109,63021.a.Direct material$3,350Direct labor 650Applied overhead ($650 x .60) 390Total cost$4,390b.BI of WIP ($8,250 + $1,200 + $720)$10,170Direct material$17,350Direct labor 6,300Applied overhead ($6,300 x .60) 3,780 27,4

37、30$37,600EI of WIP (4,390)Cost of goods manufactured$33,210c.Actual overhead$ 4,350Applied overhead (3,780)Underapplied OH $ 57022.A standard costing system is most appropriate in production settings in which activities are repetitive. That criterion is met in the case of United Services. The develo

38、pment of standards requires that expectations (standards) about cost levels and quantities of inputs consumed be reliable. Repetitive activities facilitate development of reliable standards. Once the standards are developed, actual costs and input quantities can be compared against the standards to

39、better understand the causes of cost variability across the contracts. The better the causes are identified and understood, the better able managers will be to manage costs more effectively and price their services appropriately. 23.Material price variance = Actual cost for paper purchased Standard

40、cost for paper purchased = ($0.016 x 490,000) ($0.018 x 490,000) = $7,840 - $8,820 = -$980. Since the actual paper cost was less than the standard, the $980 variance is favorable. Material quantity variance = Actual cost for paper used Standard cost for paper that should have been used = ($0.018 x 4

41、90,000) ($0.018 x 492,000) = $8,820 - $8,856 = -$36. Since the actual paper usage was less than the standard allowed, the $36 variance is favorable. 24.a.Total payroll = 49,500 $9.25 = $457,875b.Labor rate variance = Actual payroll Standard cost for actual hours worked = $457,875 ($9.75 x 49,500) =

42、$457,875 - $482,625 = -$24,750. Since direct labor employees were paid less than the standard rate, the $24,750 variance is favorable.c.Labor quantity variance = Standard cost for actual hours worked Standard cost for standard hours allowed for production = ($9.75 x 49,500) ($9.75 x 46,200) = $482,6

43、25 - $450,450 = $32,175. Since the number of hours worked was greater than the standard hours allowed, the $32,175 variance is unfavorable.d.One concern would be the reason the company was paying its workers less than the standard rate per hour. The other concern would be that the workers, recognizi

44、ng that they were being paid less than the standard, chose to work more slowly than they normally would, to compensate (relative to total wages) for the reduced wage. If this situation is the case, the company would have been better off paying the standard rate because the actual payroll was $7,425

45、greater than the standard would have been. 25.a.Currently, Kelly has no data on the actual cost of building any of the computers she configures. Consequently, she is unable to determine the actual profit (loss) generated on any sales transaction. The job order cost system would allow Kelly to better

46、 understand what factors drive costs in her firm, measure the profit on sales transactions, and identify ways to better manage costs and revenues.b.A pricing policy that ignores the costs of direct labor and overhead (in addition to marketing and administrative costs) is flawed. Only in the circumst

47、ance that overhead and direct labor are strictly proportional to direct material, could the costs of direct labor and overhead not be factored into determining the price and profit of each computer. costs are likely a major portion of the cost of building a computer. 26.a.Secretary ($4,800 160 hrs.

48、x 25 hrs.) $ 750.00Copies (1,450 pages x $0.05 per page) 72.50Phone calls 310.25Overhead ($9,600 120 hrs. x 75 hrs.) 6,000.00Attorneys time ($90 x 75 hrs.) 6,750.00Total charges$13,882.75This means Crawford would be charging $13,882.75 75 = $185 per hour (rounded).b.Direct costs ($72.50 + $310.25 +

49、$6,750.00)$ 7,132.75Allocated secretarial costs 750.00Allocated overhead 6,000.00Margin ($90 + $80) 0.50 75 hrs. 6,375.00Total billing $20,257.75 27.Each student will have a different answer, but the memo should address the following issue:Budgeted cost is far below each jobs actual cost, which indi

50、cates that the company is not using past job information as a basis for either controlling costs or increasing future bid prices. By not using available historical information to adjust operations, the company is accepting marginal jobs. Although each job generated a positive gross margin, the actua

51、l gross margin is only a small fraction of the budgeted gross margin. It is important that a company learn from past mistakes.28.a.Some of the companies that have been found to engage in this practice are Family Dollar, Pep Boys, Taco Bell, Toys-R-Us, and Wal-Mart.b.It is easier to doctor the record

52、s now than in the past because records are computerized and managers generally have access to the files. Previously, managers would have had to conspire with payroll clerks or accountants to change paper or punch-card records.c.Each student will have a different answer. However, most students will p

53、robably indicate that store managers making such changes would be fired (short-run). For the long-run, ethics training would probably be recommended and possibly a change in the way store managers bonuses are computed. 29.a.The estimated cost of the spoilage should be included in calculating the predetermined overhead rate. This approach spreads the cost of spoilage across all good units produced.b.The cost of this spoilage should be charged to the specific job. Since there is no salvage value for the spoilage, no journal e