accaspaceaccaspace.com/.../ppt/f2_chapter_14_process_costing.pdf · 2016-01-01 · part b process...

ACCAspace

Provided by ACCA Research Institute

Copyright © ACCAspace.com ACCAspace 中国ACCA特许公认会计师教育平台

ACCA F2

Management Accounting (MA)

管理会计

ACCA Lecturer: Belinda Qiu

Copyright © ACCAspace.com ACCAspace 中国ACCA特许公认会计师教育平台 2

Part B Job and batch costing

1. Job costing

2. Batch costing


Part B Process costing

1. Process account

2. Normal Loss

3. Abnormal loss/gain

4. WIP

5. FIFO and weighted average method

6. Joint and by-products



1. Introduction

1.1

1.2 features



2. Losses and gain in process costing

2.1 normal losses

2.1.1

The expectation is based on past experience and the loss is considered

to be unavoidable.

2.1.2 solution procedures of normal losses having a scrap values:

① Calculate the number of normal loss units

② Calculate the expected number of output units

③ Total the process costs

④ Calculate the cost per unit

Cost per unit= total costs of inputs−scrap values of normal loss

expected output



2.2 Abnormal loss and gain

2.2.1

Abnormal loss units=expected output-actual output

2.2.2



3. Process account



EXAMPLE:

Input materials 1000kg $9000, labor cost $18000, OHs $13500

Normal loss=10% of input(expected). Actual output 850kg. Losses are

sold as scrap for $9/kg.

Cost per unit and accounts ?

Cost per unit=9000:18000:13500;100×9

1000×(1;10%)=44

Normal loss=1000*10%*9=900 Abnormal loss=(1000*(1-10%)-850)*44=2200 Scrap value of abnormal loss=50*9=450 Output=44*850=37400



4. Work in progress

4.1 equivalent units

It is unlikely that all inputs to production will take place at the same

time. Example from BPP:



4.2 Cost allocation between FG and WIP

4.2.1 Weighted average method



Cost of opening WIP

Current period cost

Total cost

Cost of closing WIP

Cost of FG



4.2.2 FIFO method

Cost of opening WIP

Current period cost

Cost of finishing opening WIP

Cost of units started and finished

Cost of units started but not finished

Cost of FG

Cost of closing WIP



4.3 which method should be chosen?

在weighted average方法中，我们一直在使用equivalent unit，需要完工度



5. Joint and by-product

5.1 introduction



5.2 treatment of by-product



5.3 appointment joint cost

The total joint cost incurred in the process were $24000

Products units weight sales

X 6000 4000 14000

Y 2000 1800 7000

Z 2000 2200 9000

P/L based on physical weight or sales value

(a)24000

1800:4000:2200= 3/𝑤𝑒𝑖𝑔ℎ𝑡

(b)24000

14000:7000:9000= 0.8/𝑤𝑒𝑖𝑔ℎ𝑡



Q1.

A



Q1.

ACCAspace

Provided by ACCA Research Institute

accaspaceaccaspace.com/.../ppt/f2_chapter_14_process_costing.pdf · 2016-01-01 · part b process...

Documents