Course Title: (Cost Accounting )

Course Objectives: Understand what Cost accounting adds to General accounting. Why it is necessary for the management of an entity. Learn how to classify the various types of costs, calculate unit costs. Learn what is job order costingl.

Course Contents:

Cost Accounting – Basic Concepts and Job Order Cost Cycle The Purpose of Cost Accounting Manufacturing Cost Classified Inventories for a Manufacturing Company System of Cost Accumulation Chart of Costs for a Manufacturing Company Types of Cost Systems Job Order Cost Cycle – Normal Costing Recording Costs as Incurred Matching Cost Flow and Work Flow

Purchasing Materials Materials Control Materials Purchasing Procedures Computerized Materials Purchasing System Special Purchasing Procedures

Storing and Issuing Materials Issuance of Materials Principles of Internal Control Special Issuing Procedures Computerized System for Issuance of Materials

Controlling and Costing Materials Inventory Inventory Costing Methods Application of the Rule of Cost or Net Realizable

Value, Whichever is Lower Cutoff Date Periodic Physical Inventory Adjustment of Inventory Shortage or Overage Inventory Management Just in Time Inventory Management

Activity Based Costing Traditional Costing versus Activity Based Costing Comparing Unit Costs Advantages and Disadvantages of ABC System Implementing ABC System ABC in Service and Merchandise Companies

Labor Accounting – Control and Costing Timekeeping Procedures Payroll Procedures Flow of Payroll Costs Computerized Payroll Charging Labor Costs into Production Recording Labor Costs Flow of Labor Costs Employer’s Contributions

Manufacturing Overhead Accounting – Actual and Applied Nature of Manufacturing Overhead Types of Manufacturing Overhead Costs Control of Manufacturing Overhead Costs Charging of Manufacturing Overhead to Production Purpose of Overhead Rates Determining Overhead Rate Types of Overhead Rate Bases Recording Manufacturing Overhead Costs Overhead or Under applied Overhead

Manufacturing Overhead – Departmentalization Need for Departmentalization Classification of Departments Procedures for Departmentalization Recording Applied Departmental Manufacturing Overhead Recording Actual Departmental Manufacturing Overhead

Completing the Cost Cycle and Accounting for Production Losses Completing the Cost Cycle Recording the Jobs Completed Recording Sales and Finished Goods Accounting for Production Losses in a Job Order Costing

System Accounting for Scrap Accounting for Spoiled Goods Accounting for Defective Goods

Recommended Text: Pedro P. Guerrero COST ACCOUNTING Principles and procedural Applications

Assessment: Quizzes, Major Exams, Recitations, Attendance

Prepared by:

Hilda Angelie Bernal, CPA, REA