管理会计(双语)-8.pptVIP

Chapter 8 Process costing Chapter contents: 1. Absorption costing 2. Process costing and output costing 3. Simple process accounts 4. Process losses in process costing 5. Working-in-process and equivalent units 1. Absorption costing Absorption costing Reasons for absorption costing Stock valuation Pricing Calculate profit Overhead Overhead costs(indirect costs): 1)production overheads 2)administration overheads 3)selling overheads 4)general overheads overhead costs(indirect costs): Fixed overheads Variable overheads Production(manufacturing) overhead Content: indirect material indirect wages indirect expenses Production(manufacturing) overhead Overheads of production departments Overheads of service department Indirect manufacturing costs are incurred in three main ways: Production activities Service activities Establishment costs The absorption costing process for production overhead(recovered in production costs or charging production overheads to product costs ): Simple process: 1)total production overheads/total number of units produced 2)use a factory-wide rate per direct labor hour worked Complex process: A three-stage process:direct method A four-stage process 3As: Allocation Apportionment Absorption Apportionment of general overhead costs Example: Production overhead costs for the period (assume we have already allocated our direct costs to cost units). ?Factory rent ￡ 20,000 ?Factory heat 5,000 ?Processing Dept – supervisor 15,000 ?Packing Dept – supervisor 10,000 ?Depreciation of equipment 7,000 ?Factory canteen expenses 18,000 ?Welfare costs of factory employees 5,000 Apportionment of service department overhead costs Direct method Step-down method Repeated distribution method Simultaneous equation method Production Depts Service Centres ? X Y Stores Maintence Allocated and apportioned Overhead