Cost Accounting

Module 1.
Job Costing  Normal Costing or Actual Costing Normal Costing DM – actual DL - actual OH - predetermined Actual Costing DM - actual DL - actual OH - actual

Isang job, parang may isang account (e.g. WIP Piggy banks 1) Spoilage: Walang rate  1Charged to WIP pag normal 2 Charged to Loss pag abnormal Pred. Rate inclusive of spoilage  3Charged to FOH pag normal yung unsalvageable cost  4Charged to Loss pag abnormal

Cost of Spoilage – Salvage Value = Unsalvageable Value 1 Dr. SUI (@Salvageable Value) Cr. WIP Dr. SUI (@salvageable value) Dr. FOH (@unsalvageable value) Cr. WIP (@total cost of spoilage) Dr. Loss from Abnormal Spoilage (@unsalvageable cost) Dr. SUI (@salvage value) Cr. WIP (@Total Cost of spoilage)

3

2&4

Waste: Dr. WIP/FOH Cr. Cash / AP Scrap Dr. Cash Cr. WIP / FOH Rework Normal/Specific/Regular Dr. WIP Cr. Various Abnormal/ X / Regular Dr. Loss from Abnormal Rework Cr. Various

Normal / Common to all / Regular Dr. FOH Cr. Various Normal / Specific / Irregular Dr. WIP Cr. Various Dr. DUI Cr. WIP @NRV @NRV

Abnormal/ x / Irregular Dr. Loss from Abnormal Rework Cr. Various Dr. DUI Dr. Loss on Deficiency Cr. WIP @NRV @Cost-NRV @Cost of reworked units

Normal / Common To All / Irregular Dr. FOH Cr. Various Dr. DUI Cr. WIP

Module 2.
Joint Costing 1. Remove cost of by-product (kung time of production) *At NRV ** At NRV-Profit Margin *** At Constant Gross Profit Margin 2. Allocate the remaining cost to joint products *Physical Measure ** NRV at split off Point *** Approximated NRV

JOINT COST POOL

1. Remove Cost of Byproduct

2. Allocate the remaining cost to joint products *Physical Measure NO PROBLEM ** NRV at split off Point 5.00 DAC

*** Approximated NRV 15 DAC

Approximated NRV

Less Additional Processin g

3rd MODULE

4th MODULE Standard Costing  Everything has predetermined rate Predetermined Rate Computation (Standard Quantity / Unit) X (Standard Cost/Quantity) = (Standard Cost/Unit)