USCPA BEC 勉強メモ
Module 46: Cost Measurement and Assignment
[Overview]
Main purpose:
To allocate the costs of production (DM, DML and MOH) to the units prodused
To provide important information for management decisions
It is acheved through a costing system (job-order, process, activity-based)
[Cost of Goods Manufactured (CGM)]
- CGM statement is prepared to summarize the manufacturing activity of the perioed
- CGM = Purchases for a merchandising firm
- BWIP + DM + DML + MOH - EWIP = CGM
[Job-Oder Costing]
- Applicable to the production of customer-specified products
- A subsidiary record (job-order cost sheet) is needed to keep track of all unfinished jobs (work in process) and finished jobs (finished goods)
- Whenever work in process is debited or credited, the amount is the sum of the postings on the job-order cost sheet
[Accounting for Overhead]
- Overhead = all manufacturing costs (other than DM and DML)
- It cannot be directly traced to the final product. There fore it must be applied (当てはめる), rather than directly charged, to goods produced
1. Overhead items are grouped by cost behavior (e.g., fixed and variable)
2. The fixed & variable OH costs are estimated for the forthcoming perioed
3. A denominator (activity) is chosen (A common choice; DL hours or Mchine hours)
This activity base shoud bear a casual relationship to the incurrence of OH costs
4. The actual activity level is estimated for the forthcoming year (e.g., 80,000 hours)
5. Determine the normal capacity of the facility (e.g., 100,000 hours)
6. Determine the predetermined overhead rates:
a. For variable OH
Estimated variable OH costs / Estimated actual activity level (変動費だから)
$200,000 / 80,000 hours = $2.5/hour
* Alternatively, the variable OH may simply be estimated on a per unit basis based on past history (e.g, $2.50 per unit)
b. For fixed OH
Estimated fixed OH costs / Normal capacity (固定費だから)
$400,000 / 100,000 hours = $4.00/hour
7. As actual OH costs are incurred, they are debited to the factory OH accounts
8. As jobs are completed, the predetermined OH rate is used to apply OH to these jobs
[Disposition of Under- and Overapplied Overhead]
- If both OH are immaterial, it is written off to cost of goods sold
- If variable OH is significant, the incorrest costs will be in three acconts: WIP control, FG control and CGS. Proration may be made based upon total ending balance
- If fixed OH is significant, it should be always be charged to CGS
A. Cost of Goods Manufactured
B. Cost Flows
C. Job-Oder Costing
D. Accounting for Overhead
E. Disposition of Under- and Overapplied Overhead
F. Service Depertment Cost Allocation
G. Process Costing
H. Hybrid-Costing System
I. Backflush Costing
J. Activity-Based Costing
K. Joint Products
L. By-Products
M. Estimating Cost Functions
N. Variable (Direct) and Absorption (Full) Costing
