Professional Documents
Culture Documents
Definition
Cost accounting is a system that records, summarizes, analyzes, and interprets the details of the cost of materials, labor, and overhead necessary to produce and sell an article.
Purpose
Cost accounting purpose is to provide management with the necessary accounting tools for planning and controlling activities.
FINANCIAL ACCOUNTING
COST ACCOUNTING
MANAGEMENT ACCOUNTING
Prime Cost
Direct Labor
Direct Materials
Factory Overhead
Actual Cost System (Historical) Standard Cost System (Predetermined) Normal Cost System (Hybrid)
Total Costs
Manufacturing Cost
Distribution Cost
Administrative Cost
Direct Materials
Direct Labor
Manufacturing Overhead
Delivery
Sales
Income Statement
Revenue Sales Cost of Goods Sold Finish Goods Inventory - Beg. Add: Cost of Goods Manufactured (Annex - A) Total Goods Available for Sale Less: Finish Goods Inventory - End Gross Profit on Sales Less: Operating Expenses Selling expenses General & Administrative expenses 20,000.00 15,000.00 35,000.00 30,000.00 225,100.00 255,100.00 33,600.00 221,500.00 83,500.00 305,000.00
48,500.00
14,550.00 33,950.00
Direct Labor Manufacturing Overhead Applied (Annex A-1) Total Manufacturing Cost Add: Work in process (Beg.) Total Cost of Goods placed in process Less: Work in process (End) Cost of Goods Manufactured
The End