Principles of Cost Accounting

by Vanderbeck, Edward J.

• ISBN13: 9780324191691
• ISBN10: 0324191693
• Edition: 13th
• Format: Hardcover
• Copyright: 2004-03-08
• Publisher: South-Western College Pub

Summary

This book provides readers with a thorough, but concise, understanding of concepts, behavior, and accounting techniques applicable to manufacturing cost systems.

Table of Contents

Chapter 1 Introduction to Cost Accounting	1	(50)
Uses of Cost Accounting Data	4	(4)
Determining Product Costs and Pricing
Planing and Control
Professional Ethics and CMA Certification
Relationship of Cost Accounting to Financial and Managerial Accounting	8	(3)
Cost of Goods Sold
Inventories
Elements of Manufacturing Costs	11	(2)
Direct Materials
Direct Labor
Factory Overhead
Summary of Manufacturing Costs
Illustration of Accounting for Manufacturing Costs	13	(10)
Flow of Costs
Cost Accounting Systems	23	(28)
Special Order
Continuous or Mass Production
Combination of Systems
Standard Costing
Illustration of a Job Order Cost System
Work in Process Control Account
Work in Process in the Manufacturing Statement
Basic Cost System
Journal Entries
Financial Statements
Chapter 2 Accounting for Materials	51	(48)
Materials Control	52	(5)
Physical Control of Materials
Controlling the Investment in Materials
Materials Control Procedures	57	(8)
Materials Control Personnel
Control During Procurement
Control During Storage and Issuance
Accounting For Materials	65	(11)
Determining the Cost of Materials Issued
Accounting Procedures
Just-in-Time Materials Control	76	(23)
JIT and Cost Control
JIT and Cost Flows
Chapter 3 Accounting for Labor	99	(36)
Scrap, Spoiled Goods, and Defective Work	79	(21)
Scrap Materials
Spoiled and Defective Work
Wage Plans	100	(2)
Hourly Rate Plan
Piece-Rate Plan
Modified Wage Plans
Controlling Labor Cost	102	(4)
Labor Time Records
Payroll Function
Accounting for Labor Costs and Employers' Payroll Taxes	106	(7)
Employers' Payroll Taxes
Illustration of Accounting for Labor Costs
Payroll Accrual	113	(3)
Special Labor Cost Problems	116	(19)
Shift Premium
Employee Pension Costs
Bonuses
Vacation and Holiday Pay
Accounting for Bonuses, Vacations, and Holiday Pay
Chapter 4 Accounting for Factory Overhead	135	(56)
Identifying Cost Behavior Patterns	136	(1)
Analyzing Semivariable Factory Overhead Costs	137	(5)
Observation Method
High-Low Method
Scattergraph Method
Limitations of High-Low and Statistical Scattergraph Methods
Budgeting Factory Overhead Costs	142	(1)
Accounting for Actual Factory Overhead	143	(5)
Factory Overhead Analysis Spreadsheets
Schedule of Fixed Costs
General Factory Overhead Expenses
Summary of Factory Overhead
Distributing Service Department Expenses	148	(6)
Applying Factory Overhead to Production	154	(5)
Direct Labor Cost Method
Direct Labor Hour Method
Machine Hour Method
Activity-Based Costing Method
Accounting for Actual and Applied Factory Overhead	159	(32)
Chapter 5 Process Cost Accounting-General Procedures	191	(40)
Comparison of Basic Cost Systems	192	(1)
Materials and Labor Costs
Product Cost In a Process Cost System	193	(1)
Factory Overhead Costs
Nondepartmentalized Factory
Work in Process Inventories	194	(3)
Departmentalized Factory
Cost of Production Summary-One Department, No Beginning Inventory	197	(2)
Cost of Production Summary-One Department, Beginning Inventory	199	(2)
Cost of Production Summary-Multiple Departments, No Beginning Inventory	201	(9)
Cost of Production Summary-Multiple Departments, Beginning Inventory	210	(7)
Changes in Prior Department's Unit Transfer Costs	217	(14)
Cost of Production Summary, Two Departments
Chapter 6 Process Cost Accounting-Additional Procedures: Accounting for Joint Products and By-Products	231	(42)
Equivalent Production-Materials Not Uniformly Applied	232	(7)
Illustrative Problem No. 1
Illustrative Problem No. 2
Illustrative Problem No. 3
Units Lost in Production	239	(2)
Units Gained in Production	241	(2)
Equivalent Production-First-In, First-out Method	243	(7)
Illustrative Problem No. 1
Illustrative Problem No. 2
Joint Products and By-Products	250	(23)
Accounting for Joint Products
Accounting for By-Products
Chapter 7 The Master Budget and Flexible Budgeting	273	(32)
Preparing the Master Budget	274	(1)
Principles of Budgeting	274	(10)
Sales Budget
Production Budget
Direct Materials Budget
Direct Labor Budget
Factory Overhead Budget
Cost of Goods Sold Budget
Selling and Administrative Expenses Budget
Budgeted Income Statement
Other Budgets
Flexible Budgeting	284	(3)
Evaluating Budget Performance
Preparing the Flexible Budget
Preparing a Performance Report Based on Flexible Budgeting
Preparing the Flexible Budget for Factory Overhead	287	(18)
Using the Flexible Budget
Semifixed and Semivariable Costs
Service Department Budgets and Variances
Summary of the Budgeting Process
Chapter 8 Standard Cost Accounting-Materials, Labor and Factory Overhead	305	(56)
Types of Standards	306	(1)
Standard Cost Procedures	307	(1)
Determination of Standard Costs for Materials and Labor
Determination of Variances	308	(4)
Recording Standard Costs for Materials and Labor
Accounting for Variances	312	(3)
Alternative Method of Recording Materials Cost
Disposition of Standard Cost Variances
Analysis of Variances	315	(4)
Features of Standard Cost Accounting	319	(1)
Illustration of Standard Cost in a Departmentalized Factory	320	(6)
Analysis of Factory Overhead Standard Cost Variances	326	(1)
Two-Variance Method of Analysis	327	(4)
Four-Variance Method of Analysis	331	(2)
Appendix: Four-Variance and Three-Variance Methods of Analysis
Three-Variance Method of Analysis	333	(28)
Chapter 9 Cost Accounting for Service Businesses	361	(22)
Job Order Costing for Service Businesses	362	(3)
Job Cost Sheet for a Service Business
Choosing the Cost Allocation Base
Tracing Direct Costs to the Job
Cost Performance Report
Budgeting for Service Businesses	365	(4)
The Revenue Budget
The Labor Budget
The Overhead Budget
The Other Direct Expenses Budget
The Budgeted Income Statement
Activity-Based Costing in a Service Firm	369	(3)
Converting Indirect Costs to Direct Costs
Multiple Indirect Cost Pools
Job Cost Sheet-Activity-Based Costing
Allocations using Simplified Costing Versus Activity-Based Costing	372	(11)
Chapter 10 Cost Analysis for Management Decision Making	383	(40)
Variable Costing and Absorption Costing	384	(4)
Product Costs Versus Period Costs
Illustration of Variable and Absorption Costing Methods
Merits and Limitations of Variable Costing	388	(1)
Segment Reporting for Profitability Analysis	389	(2)
Cost-Volume-Profit Analysis	391	(7)
Break-Even Analysis
Break-Even Chart
Break-Even Analysis for Management Decisions
Effect of Sales Mix on Break-Even Analysis
Contribution Margin Ratio and Margin of Safety	398	(1)
Effect of Income Tax on Break-Even Point and Net Income	399	(1)
Differential Analysis	400	(3)
Accept or Reject a Special Order
Make or Buy
Distribution Costs	403	(20)
Glossary	423	(10)
Index	433