Cost Accounting

Chapter 1: Introduction to Cost Accounting

Definition

Scope of Cost Accounting

Objective of Cost Accounting Data

Recent Developments in Cost Accounting

Chapter 2: Concepts and Classifications of Costs

Definition

Classification of Costs

I. Cost classified as to relation to a roduct

a. Manufacturing Cost/ production cost
i. Direct Materials *part of finished roduct that can be traced to specific roduct
units
Direct Labor *work erformed on roducts that can be traced to end roducts
ii.
iii. Factory Overhead *
b. Non-manufacturing costs/ period cost
i. Marketing or Selling Expense
ii. General or administrative expense
II. Costs classified as to variability
a. Variable Costs
b. Fixed Costs
c. Mixed Costs
III. Costs classified as to relation to manufacturing deartments
a. Direct dearmental charges
b. Indirect departmental charges
IV. Costs classified to their nature as common or joint
a. Common Costs
b. Joint Costs

Cost Formula

Chapter 3: Cost Accounting Cycle

Parts of Cost of Goods Sold Statement
 Reparation of Cost of Goods Sold Statement

Reparation of Financial Statements

Chapter 4: Job Order Costing

Job Cost Sheet

Source Documents for Job Order Costing

Accounting procedures for Materials

Accounting procedures for Labor

Accounting procedures for Factory Overhead

Chapter 5: Just in time and Back flush Accounting

Definition

Characteristics of Just in Time

Operation of JIT System

Chapter 6: Accounting for Materials

Objectives of Materials Control

Methods of Costing Materials

Accounting for Defective Units

Accounting for Spoiled Units

Chapter 7: Accounting for Factory Overhead

Definition

Computation of Factory Overhead Rate

Allocation of Service Department Cost

Activity Based Costing

Computation of Factory Overhead Variance

Chapter 8: Accounting for Labor

Wage lan

Computation of Payroll and Net Pay

Computation of Employers Payroll Taxes

Accounting for Labor Cost

Chater 9: rocess Costing
Definition

Characteristics of rocess Costing

Cost of roduction Reort

Roduct Flow

Comarison of Job Order Costing

Chater 10: Average and FIFO Costing

Differences between FIFO and Average

Characterisitics of FIFO costing method

Characteristics of Average costing method

Comutation of Equivalent roduction

Comutation of Unit Cost

Comutation of Cost Allocation

Chater 11: Joint roducts and By roducts

Joint Costs

Characterisitics of Main roducts

Characteristics of By roducts

Accounting Methods for Main roducts

Accounting Methods for By roducts

Relacement Cost Method

Chater 12: Standard Costing

Definition

Nature of Standard Costs

Uroses of Standard Costs

Tyes of Variances

Comuation of Variances

Entries to record Different Variances