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Cost%20Acctg%20Process%20and%20Entries%20Example0 - 20 60...

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Management Cost Accounting Accounting Process and Entries Normal Cost Method: WIP FG Inv DM$ Costs to 2 Costs from 2 DL$ App MOH (A) (A) Departmental OH rate-each has its own MOH Rate (Applied) based on anticipated OH OH Rate times (x) Cost Driver that reflects actual production Cost driver: plant wide or departmental Mfg OH Control End of Acct Period = Over or Under Applied Actual MOH Applied MOH (A) Over Applied=credit balance Under Applied=debit balance Resulting Mgt Information Reports: JOB COSTS SHEETS PRODUCTION COST REPORTS Income Statement Sales xx COGS (xx) Includes Over/Under Applied OH - must Gross Margin xx consider allocating to Inventory and COGS Period Costs xx Inc Before Tx x Units = Ten (10) Estimated Estimated Item - $ from G/L Variable Costs Fixed Costs Total Indirect Mtls/Sup 10 10 Indirect Labor 20 6 26 Utilities 30 14 44 Depreciation 0 20
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Unformatted text preview: 20 60 40 100 Predetermined OH Rate = $100/10 = $10/unit (cost measurement) Everytime you make a unit you charge $10 to the unit no matter the actual costs Cost assignment: whne job is finished or end of accounting period TRANSACTIONS 1 Purchased raw materials for $20000 2 Issued $15000 of RM to WIP for Job 1 3 Payroll: DL $5000, plant supervision $3000 and G&A $7000 4 Depr: Plant $5000, Equip $2000, and admin bldg $3000 5 Accrued property taxes $500 6 Finished Job 1 and applied OH at $100/hour for 100 hours 7 Transferred job 1 to FG 8 Sold Job 1 for $75,000 9 Recognized cost of goods sold for Job 1 10 Closed Under/Over applied OH to COGS Acc P/R Gen & Admin Costs Acc Prop Txs Accum Depr Accounts Payable Raw Materials Accounts Receivable Sales COGS...
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