Topic 2 Chapter 2 - Accountant Cost Concepts Notes

tOPic 2: chPt 2 different cost concepia ( crossifications are und for diferent perpeses' true product coats → cust canyned to inventry, sted to vaiue the inventory i nonalacuad goole or Merchendee wahl the goode are feld 4 product aunts eventucily offort bolin bes & 1[a period costs → code that are ret product costs, cants identified win the period of lime le which they der incurtad rather than with units of purchasad or produced groda product costs « cred materials + direct lator + manufocturing overtead period canis • total of expenses eg Mies con merchandise inventory - ducount relaler repart as on aurel insted gools - Inventones a company ordinarly told for asie. § drat retends and mendeng pes, one a are on ted a pedes oy. diroct labor → cont of sinnies, wages ind frage lonelia for persorred who von directly on the maniactured producte book binder ompogies tha Costs manufachuring overhead - other costs of manuschwing- indirat retards -» costa de mutanele repiral fie produchion process but de not become an integral part of the fosted, produc -indired laber → crets of personnel who do net sort dratty on the pended -other varufschunng cartt -eg depreciation of budding and suipment, property fees, innuancs, and wilkies ne Supert departrom do fe won droo in hurtading protect cost of goods completed incudes row materiale used eg monuleduring coat: 11200.000 cost of goods sold • begining Fa t cogm - ending ra begering & ending MI: 40,000 $ 90,000 NiP inventory composes am, De( moM begming fending R6: 2350.000 {182.000 Cant of goods manufactured • cogs t clong 16 - opening RE apering MiP , cogen + desing W. nonfechung corts 1. And coom: opting up. coum + cling uP - manufachting costs 60,000 - Coym + 90,000 - 1500.000 King echutes: 30l, odein ochutes: 361, $ 601 al 3001 graducte was 3044, wheh in the percentage of depreciation that appear an i/= 50.000 - 40,000 + LFOR 000 • Cage 100f - 201-351 - 45/ саут • 1, $70.000 601 0 451 • 391 2 find coss » beginning fy + cogm -enting is 301+301 + 341 « 83% = 350,000 $ 1,490,000 - 180,000 inappropriate cont diver - mandacharing overal trourd in a healy aomaled = 1, 590,000 Racity, dect Wher hours Cost aliver → Covactenali it an activity be event that cause cants to de mournad 8g Fatal carts 1180.000 Vhen 10,000 unle an produced, of Pala anount, veristle catta are $64.000. west are the total catts ween 19,000 unvis ane produced? verable can | unt - 964,000 - 10,000- • 5440 Fived cart + 3:80,000 - BI4.000 tote cool at 13,000 vets • (86.40 x 18.0004) + $114,000 = 319,200 fixed catts → cutta that remain constert as ochety oranges fued cont per unt will increase sa achilly deuriose orid will decrease at achety norses automobile manufacharad by Ganenil Metor, the Now Sone Fire Department crampies of cost skyecks Burger King realaurant Iatad in Devdand, Ohio Detta Purlines flight from Pliania $ Moni Direct cools - citis inot can be essily fraced to e ipecific deparinan Indirect costs → cannot be tracnd te a particular cont olgack Similanty and difference behween merchandie Inverhary of a relaier § finished-goods eventary of a manufacurer ors: beth inventories are cared for atle by the respective buenesa. amstanity chalers purchase merchandite invorlory, n contruat, manufacturing firms produce their goods opportunity conte - beneft Hot u. Socrificed Men ite chulue of one action reades toling on stemative couse of achen. out-of-podie costs → require the pognat of cash or other acets as a real de Her recurrence Jerk costs costa ihai have been incurred in the pani differentidi corts → omount by whia the cast diflers unde his chernahue actors incrementol costs + incretse in Cort from one allerative ta ancines morme stole mere sales comeussions camad by a compony a tales force tie coet of products tole ta cuttomers of an apporel store irkome tares incurted by an airline markelina cosis of on erectronics manufacturen castor goods manufacturee 1. tow materials purchosed aunne me periad a. current yeu't dep" on a fimia manstodiunna facillies 3 Neges carned by madrine operatora in & manufactunng plant * nona labor costs incurted by a manufacturer et office enuipment utar-end camoletes irnouction of a cortes monulactuter What mage ostet will normasy be foligelficont foc benvice enterprtes & reativo, subttonhol fer italet, neciesolerz, and morufocarent ? brichly discuss the ottch that differs omong thase busines in iwentigy Service business typicaly cong no or very late devertory roders & rolesters normaly atod condiderabie inventory. manufactires diss corty a gniticar invertones, typically 3Mb-dirided in 3 categones: nov maional, werk in process & minished gooda Kets mecenar tent elite do heerator CRINO BARATE LAN Mithle togireino and perting modo in percos inscrevos anescend so 8806,000 asal 470440 83300)004100388 Buiỏing deprotestioa (S330,000 x 2005) e ta blu Direct labor Tosa mareiacturing couts Add Work in roces, lxen adast: Work in nrocoas, cid Cos of goods 18am cluriad C. Finshad good, bog. Add Cos of goode manufactured lodact: imated goods, ced Cast of tooth sht 178,100 51418.100 406.100 $1,054,100 51.139.000 $ 150100 dee eu ter ad seberr 31.119.100 Fone: Peen lones fracases 11.751 ALEXAVORIA A Frone Vou Euro Deen 1:204 Les: cestaf goads selo