English for Accounting 3-2 Contents • English for financial accounting ▫ Costing systems ▫ Cost – Volume – Profit analysis ▫ Budgeting ▫ Accounting information for decision making • English for managerial accounting • English for auditing 3-3 Evaluation • Participation (10%) • Mid-term exam (20%) • Final exam (70%): CLOSED - BOOK ▫ Question 1: (2 marks) Fill in blanks (10 words) ▫ Question 2: (2 marks)  Multiple choices (10 questions)  Matching terms to definitions (5 terms) ▫ Question 3: (3 marks) Reading (3 short answer questions) ▫ Question 4: (3 marks) An essay (200 words) Job-Order Costing Topic 3-5 Job-order costing vs Process costing Process Costing   Many Manyunits unitsof ofaasingle, single, homogeneous homogeneousproduct productflow flow evenly evenlythrough throughaacontinuous continuous production productionprocess process   One Oneunit unitof ofproduct productisis indistinguishable indistinguishablefrom fromany any other otherunit unitof ofproduct product Job-order Costing   Many Manydifferent differentproducts products are areproduced producedeach eachperiod period   Products Productsare are manufactured manufacturedto toorder order 3-6 Manufacturing cost flows Manufacturing costs incurred • Direct material cost (Account # 621) • Direct labor cost (Account #622) • Manufacturing overhead (Acct #627) Cost of goods sold • Account # 632 Work – in process • Account #154 Finished goods • Account #155 3-7 Trace vs Allocate Trac ed d irec to e tly ach job Manufacturing Manufacturing overhead overhead(OH) (OH) Allocated Allocated(Applied) (Applied)totoeach each job jobusing usingaa predetermined predeterminedoverhead overhead rate rate The The Job Job ctly e r i dd e c job Tra h c a to e 3-8 Allocation base vs Cost driver Allocation Allocation base: base: e.g e.g Labor Labor hours hours Labor hours Machine hours Units produced Cost Cost drivers drivers Direct labor cost 3-9 Actual cost system vs Normal cost system Actual Costing Unit Unit Cost Cost Actual Overhead Costs Actual direct labor cost Actual direct materials costs 10 3-10 Actual cost system vs Normal cost system Normal Costing Actual direct labor cost Actual direct materials costs Unit Unit Cost Cost Amount of activity required by the unit X predetermined rate 3-11 Overhead Application in a Normal Costing System Predetermined Overhead Rate = Estimated total overhead costs Estimated total amount of allocation base 3-12 Over-applied & Under-applied Manufacturing Overhead 3-13 Documents in Job-order costing system • Bill of materials • Time ticket • Job cost sheet 3-14 Schedule of cost of goods manufactured 3-15 Schedule of cost of goods sold 3-16 End of Topic ... Contents • English for financial accounting ▫ Costing systems ▫ Cost – Volume – Profit analysis ▫ Budgeting ▫ Accounting information for decision making • English for managerial accounting • English. .. Overhead 3 -13 Documents in Job-order costing system • Bill of materials • Time ticket • Job cost sheet 3 -14 Schedule of cost of goods manufactured 3 -15 Schedule of cost of goods sold 3 -16 End of Topic. .. Evaluation • Participation (10 %) • Mid-term exam (20%) • Final exam (70%): CLOSED - BOOK ▫ Question 1: (2 marks) Fill in blanks (10 words) ▫ Question 2: (2 marks)  Multiple choices (10 questions)  Matching