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The Hashemite University Faculty of Economics and Administrative Sciences Department of Accounting Cost Accounting 2006-2007

The Hashemite University

Accounting Department Course: Cost Accounting (0202211) Instructor: Wasim Al-Shattarat, Ph.D. Office: 317- Economic Faculty Phone: 00962-53903333 –Ext. 4599 Email: wasimshattarat@hu.edu.joOffice Hours: Monday, Wednesday (12.30-01:30) Sunday, Tuesday, Thursday (11:00-12:00) “I encourage you to come by the office during regularly scheduled office hours. If these times are inconvenient, or if there is an emergency, please call first to make sure I am in. I will gladly schedule an appointment at a mutually convenient time outside of office hours” Prerequisites Accounting Principles (1) - 0202101, Accounting Principles (2) - 0202102 Course Description This course aims to identify: the importance of cost accounting in making managerial decision, cost behavior, cost allocation, process and job accounting system and other different subjects. Course Objectives: Learning Outcomes : The course aims to presents the concepts of Cost Accounting, with an emphasis on the identification, determination, and analysis of costs for the purposes of managerial planning and control. This general objective will be achieved through the following learning outcomes: A- Knowledge and Understanding

1. Students should be able to explain the the main concepts of cost and cost elements; 2. Discuss the job order and process costing systems 3. Formulate how to analyze standard costs variances

B- Intellectual Skills- Students should be able to

1. Identify the cost terms with some examples 2. Design and implement the job-order costing system 3. Design and implement the process costing system 4. Analyze the standards costs and make the variance analysis

C- Practical skills-with ability to

1. Use appropriate tools such as Excel sheets to formulate some records 2. Be aware of the practical problems facing the Jordanian firms in implementing Cost

Accounting and Standard Costing

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The Hashemite University Faculty of Economics and Administrative Sciences Department of Accounting Cost Accounting 2006-2007

This course is appropriate for undergraduate curricula at a second-year. The level of the course is to be supplemented by using real-world projects and available materials and resources. Exams and Evaluations Examinations may consist of multiple choice, essay questions or/ and problem solving. Exams: First Test 20 Points (22/03/2007 Thursday at 4 P.M) Second Test 20 Points (03/05/2007 Thursday at 4 P.M) Homework and Class Participation 10 Points Final Examination 50 Points Determined by the University

A+= 90-100 Points C+=64-67 Points

A = 85-89 Points C =59-63 Points

A- = 81-84 Points C-=56-58 Points

B+ = 77-80 Points D+=53-55 Points

B = 73-76 Points D =50-52 Points

B-=68-72 Points F = Below 50 Points

Note: This scale was applied last year so the student can use it just as a guide only for how the marks are distributed Course Contents:

Week Chapters and Activities Week 1 Chapter 1: Introduction to Cost Accounting

Cost Accounting and Financial Accounting: Concepts and Differences.

Week 2

Chapter 2: An Introduction To Cost Terms And Purposes, Ch.2. Costs Terminology. Direct Costs and Indirect Costs. Variable and Fixed Costs.

Week 3 Chapter 2: An Introduction To Cost Terms And Purposes, Ch.2.

Prime Costs and Conversion Costs. Computing Costs Of Goods Manufactured And Cost Of Goods

Sold Exercises and Problems

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The Hashemite University Faculty of Economics and Administrative Sciences Department of Accounting Cost Accounting 2006-2007

Week 4 Chapter 4: Job Costing Systems, Ch. 4. Job Costing Systems in Manufacturing. The T Accounts Exercises and Problems

Week 5

Chapter 4: Job Costing Systems, Ch. 4. Allocating Indirect Costs To Jobs Journal Entries Exercises and Problems

Week 6

Chapter 17: Process Costing System, Ch.17. Process Costing With Equivalent Units: Five Key Steps. The Case of No Beginning and Ending WIP Inventory The Case of Ending WIP Inventory

Week 7 Chapter 17: Process Costing System, Ch.17. The Case of Beginning and Ending WIP Inventory Weighted Average Method and First In, First Out Method First In, First Out Method. Journal Entries Exercises and Problems

Week 8 Chapter 17: Process Costing System, Ch.17.

Transferred Costs In Process Costing Exercises and Problems

Week 9 Chapter 15: Cost Allocation, Indirect Costs, Ch.15

Cost Allocation and Costing System Allocation Costs from one Department to Another Allocation Costs of Support Departments. Direct Allocation Method. Step Down Allocation Method Reciprocal Allocation Method

Week 10 Chapter 16: Cost Allocation, Joint Products, Ch.16

Joint Products And By Products. Approaches To Allocate Joint Cost. Accounting For By Products Exercises and Problems

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The Hashemite University Faculty of Economics and Administrative Sciences Department of Accounting Cost Accounting 2006-2007

Week 11 Chapter 7&8: Standard Costing, Topics from Chapter 7 and 8 Material Variances Labor Variances

Week 12 Chapter 7&8: Standard Costing, Topics from Chapter 7 and 8

Overhead Variances Exercises and Problems

Week 13 Chapter 5: Activity Based Costing and Activity Based Management

Week 14

Chapter 9: Inventory Costing and Capacity Analysis

Week 15

Chapter 18: Spoilage Rework and Scrap

Review And The Final Exam Materials Main Textbook:

Charles T. Horngren; George Foster and Srikant Datar. (2003). Cost Accounting, A Managerial Emphasis, 12th edition. Prentice Hall. Text site www.prenhall.com/horngren

Supporting Materials: Garrison, R. and Noreen, E. (2000). Managerial Accounting. Ninth Edition, McGraw-Hill. Dodge, R. (1994). Foundations of Cost and Management Accounting, Chapman and Hall. Jackson, S. and Sawyers, R. (2001). Managerial Accounting: A Focus on Decision Making. Harcourt College Publishers. Websites: www.hlms.hu.edu.jo