Process Costing
Job-Costing Systems Distinct, identifiable units of a product or service Examples: • Custom-made • machines, • Houses
Process-Costing Systems Masses of identical or similar units of a product or service Examples: • Food, • Chemical processing
• Process costing is a system where the unit cost of a product or service is obtained by assigning total costs to many identical or similar units • Each unit receives the same or similar amounts of direct materials costs, direct labor costs, and manufacturing overhead • Unit costs are computed by dividing total costs incurred by the number of units of output from the production process
Assumptions: • Direct Materials are added at the beginning of the production process, or at the start of work in a subsequent department down the assembly line • Conversion Costs are added equally along the production process
Five-Step Process-Costing Allocation 1. Summarize the flow of physical units of output 2. Compute output in terms of equivalent units 3. Compute cost per equivalent unit 4. Summarize total costs to account for 5. Assign total costs to units completed and to units in ending Work in Process
Equivalent Units A derived amount of output units that: 1. Takes the quantity of each input in units completed and in unfinished units of work in process and 2. converts the quantity of input into the amount of completed output units that could be produced with that quantity of input
Are calculated separately for each input (direct materials and conversion cost)
Chapter 17 Pacific electronics membuat berbagai cell phone models. Produk dibuat di Assembly Dept dan Testing Dept.
Persediaan awal PDP Jumlah yang masuk proses Produk selesai Persediaan akhir PDP
Januari 0 unit
Pebruari 0 unit
Maret 225 unit
400 unit
400 unit
275 unit
400 unit 0 unit
175 unit 225 unit *)
400 unit 100 unit**)
*) tingkat penyelesaian: direct materials 100% dan conversion costs 60%. **) tingkat penyelesaian: direct materials 100% dan conversion costs 50%.
Case 1 Selama Januari 2009 diproses dan diselesaikan di Dept Perakitan sebanyak 400 unit produk SG-40.
Physical units for January 2009: WIP, beginning inventory Started during January Completed and transferred out during January WIP, ending inventory
0 units 400 units 400 units 0 units
Total costs for January 2009: Direct materials added during January Conversion costs added during January Total Assembly Dept costs added during January
$ 32,000 24,000 56,000
• Direct material cost per unit $ 80 • Conversion cost per unit 60 + • Assembly Dept cost per unit 140
Case 2 Selama Pebruari 2009 diproses di Dept Perakitan sebanyak 400 unit , terselesaikan dan ditransfer ke Dept Percobaan sebanyak 175 unit produk SG-40. Persediaan akhir produk dalam proses sebanyak 225 unit, dengan tingkat penyelesaian: direct materials 100% dan conversion costs 60%.
Physical units for Pebuary 2009: WIP, beginning inventory Started during Pebruary Completed and transferred out during Pebruary WIP, ending inventory
0 units 400 units 175 units 225 units
Total costs for Pebruary 2009: Direct materials added during Pebruary Conversion costs added during Pebruary Total Assembly Dept costs added during Pebruary
$ 32,000 18,600 50,600
Physical units
WIP , beginning
Equivalent units Direct Materials
Equivalent units Conversion costs
0
Started during current period
400
To account for
400
Completed and transferred out during period
175
175
175
WIP, ending
225
225
135
Accounted for
400 400
310
Work done in current period only
Total production costs Costs added during February
Direct materials
Conversion costs
$ 50,600
$ 32,000
$ 18,600
Total costs to account for
50,600
32,000
18,600
Costs added in current period
50,600
32,000
18,600
Equivalent units
400
310
Cost per equivalent unit
$ 80
$ 60
Assignment of costs: Completed and transferred out
24,500
14,000
10,500
WIP, ending
26,100
18,000
8,100
Total costs accounted for
50,600
32,000
18,600
Adanya persediaan awal produk dalam proses: • Metode rata-rata • Metode masuk pertama keluar pertama
Case 3 Pada awal Maret 2009 terdapat persediaan produk dalam proses sebanyak 225 unit, dengan tingkat penyelesaian: direct materials 100% dan conversion costs 60%. Selama Maret 2009 mulai diproses di Dept Perakitan sebanyak 275 unit. Jumlah yang terselesaikan dan ditransfer ke Dept Percobaan sebanyak 400 unit. Persediaan akhir produk dalam proses sebanyak 100 unit, dengan tingkat penyelesaian: direct materials 100% dan conversion costs 50%.
Total costs for March 2009: Direct materials added during March Conversion costs added during Pebruary Total Assembly Dept costs added during March
$ 19,800 16,380 36,180
Weighted-Average Method The weighted-average process costing method calculates cost per equivalent unit of all work done to date (regardless of the accounting period in which it was done) and assigns this equivalent units completed and transferred out of the process and to equivalent units in ending WIP inventory.
Physical units
Equivalent units Direct Materials
Equivalent units Conversion costs
WIP , beginning
225
Started during current period
275
To account for
500
Completed and transferred out during period
400
400
400
WIP, ending
100
100
50
Accounted for
500 500
450
Work done to date
Total production costs Costs added during March
Direct materials
Conversion costs
$ 26,100
$ 18,000
$ 18,600
Total costs to account for
36,180
19,800
18,600
Costs added in current period
62,280
37,800
18,600
500
450
$ 75.60
$ 54.40
Equivalent units Cost per equivalent unit Assignment of costs: Completed and transferred out (400 unit)
52,000
30,240
21,760
WIP, ending (100 unit)
10,280
7,560
2,720
Total costs accounted for
62,280
37,800
24,480
First-In, First-Out Method The FIFO process costing method: (1) Assigns the cost of the previous accounting period’s equivalent units in beginning WIP inventory to the first units completed and transferred out of the process; and (2) Assigns the cost of equivalent units worked on during the current period first to complete beginning inventory, next to start and complete new units, and finally to units in ending WIP inventory .
Physical units
Equivalent units Direct Materials
Equivalent units Conversion costs
WIP , beginning
225
Started during current period
275
To account for
500
Completed and transferred out during period: From beginning Started and completed
225 175
0 175
90 175
WIP, ending
100
100
50
Accounted for
500 275
315
Work done in current period only
Total Direct Conversion production materials costs costs WIP, beginning Costs added in current period Total costs to account for Costs added in current period Equivalent units of work done in current period Cost per Equivalent unit of work done in current period
$ 26,100 $ 18,000 36,180 62,280
$ 18,600
19,800 37,800 $ 19,800
16,380 24,480 $ 16,380
275
315
$ 72
$ 52
Total production costs
Direct materials
Conversion costs
Assignment of costs: Completed and transferred out: WIP, beginning Costs added to beginning WIP in current period Total from beginning inventory Started and completed Total costs of units completed and transferred out WIP, ending Total costs accounted for
$ 26,100
$ 18,000
$ 8,100
4,680 30,780 21,700 52,480
12,600 30,600
4,680 12,780 9,100 21,880
9,800
7,200
2,600
62,280
37,800
24,480
Metode Rata-rata: Unit ekuivalen
Jumlah biaya
Biaya per unit
Biaya bahan baku
500 unit
$ 37,800
$ 75.60
Biaya konversi
450 unit
24,480
54.40
62,280
130.00
• Jumlah biaya yang ditransfer ke Dept Percobaan = $ 52,000 • Nilai persediaan akhir produk dalam proses: - Biaya bahan baku $ 7,560 - Biaya konversi 2,720 + 10,280
Metode masuk pertama keluar pertama:
PDP awal Produk jadi dari periode sekarang PDP akhir Unit ekuivalen
Biaya bahan baku
Biaya konversi
0% x 225
40% x 225
400 – 225 = 175
400 – 225 = 175
100% x 100
50% x 100
275 unit
315 unit
Unit ekuivalen
Jumlah biaya
Biaya per unit
Biaya bahan baku
275 unit
$ 19,800
$ 72
Biaya konversi
315 unit
16,380
52
36,180
124
Nilai persediaan produk selesai: • Nilai PDP awal $ 26,100 • Biaya penyelesaian PDP awal: - Biaya konversi, 40% x 225 x Rp 52 = 4,680 + 30,780 Produk jadi dari periode sekarang 21,700 + 52,480
Nilai PDP akhir: • Biaya bahan baku, 100 unit x 100% x $ 72 = $ 7,200 • Biaya konversi, 100 unit x 50% x $ 52 = 2,600 9,800
