PWRPT C4andC5 Costing

PWRPT C4andC5 Costing - Acct 2301: Part 2 Part 1 Review:...

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Acct 2301: Part 2 Part 1 Review: Chapter 1, Cost flow introduction, product vs. period costs. Chapters 2 & 3, Projecting (estimating) cost and revenue movement. Part 2 of the course covers chapters 4 - 8. Generally speaking, these chapters discuss various methods that companies use to calculate costs.
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Assigning Costs to a Cost Object Aluminum (Direct Material) Welding Experts, Electricians (Direct Labor) Overhead items: Foremen Janitors Computer System Building Welding Supplies Tools
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Cost Object Something you want to know the cost of. (I’m not sure how to end the preceding sentence without a preposition)
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Managers must have reliable cost estimates to:  Price products.  Evaluate performance.  Control operations.  Prepare financial statements. What does  it cost? Chapter 4: Job Order Costing
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How are Direct Material costs assigned to our Jet? ALCOA Aluminum Boeing Our Jet Purchasing Department Documented Transactions Make these DIRECT costs Companies Always Have This Information
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How are Direct Material costs assigned to our Jet? ALCOA Aluminum Boeing Our Jet Purchasing Department Documented Transactions like a “requisition order” make this a DIRECT costs Companies Don’t Always Have This Information
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How Are DM Costs Assigned to Our Jet? Alcoa Aluminum Boeing Purchasing Department T-Account Form: Cash Aluminum Inv. ( DM ) 1,000,000 1,000,000 This is an asset swap (no net effect on total assets)
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A Review of Chapter 1 T-Account Form: Aluminum Inv. ( RM ) Our Jet ( WIP ) 100,000 100,000 Our Jet Purchasing Department This is another asset swap (no net effect on total assets). 1,000,000
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How are DL costs assigned to our Jet? Boeing Our Jet Payroll Records, Timesheets, Work Schedules Documented Transactions
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Overhead…it’s typically the problem if you want “accurate” costs.
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How Are OH Costs Assigned to Our Jet? Our Jet Overhead items: Foremen Janitors Computer System Building Welding Supplies Tools We have no documented transactions relating these costs to our jet.
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My House See the handout
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Assigned to Our Jet? Our Jet
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This document was uploaded on 10/27/2011 for the course BUSINESS ALL at Texas Tech.

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PWRPT C4andC5 Costing - Acct 2301: Part 2 Part 1 Review:...

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