Concepts and the Process of Cost Accounting

Running Head: Cost Accounting
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Project Report: Cost accounting

Cost Accounting
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Job costing:
Normal Solution:
Direct material control
Debit credit
Particulars amount Particulars amount
balance b/d 25898 WIP 820
Purchase 4922 balance c/d 30000
30820 30820
Work in process
Debit credit
Particulars amount Particulars amount
Balance b/d 9700
Direct Material 820 Finished goods 21120
Labour 7400 balance c/d 8800
Factory
overhead 12000
29920 29920
Finished Goods
Debit credit
Particulars amount Particulars amount
Balance b/d 12780 Sales 48000
WIP 21120 balance c/d 18900
gross profit 33000
66900 66900
Accounts Payable
Debit credit
Particulars amount Particulars amount
Cash 8700 Balance b/d 5678
balance c/d 1900
Direct material
(purchase) 4922
10600 10600
Cost of goods sold
Debit credit
Particulars amount Particulars amount
sales 88000 Gross profit 33000

Cost Accounting
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Balance c/d 55000
88000 88000
Formula solution:
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B C D E
Debit credit
Particluars amount Particluars amount
balance b/d =C9-C7 WIP =C15
Purchase =E32 balance c/d 30000
=E9 =SUM(E6:E7)
Debit credit
Particluars amount Particluars amount
Balance b/d 9700
Direct Material =C18-(C16+C17+C14) Finished goods =C24
Labor =3700*2 balance c/d =(1200+7000+600)
Factory overhead 12000
=E18 =SUM(E15:E16)
Debit credit
Particluars amount Particluars amount
Balance b/d 12780 Sales 48000
WIP =C26-(C23+C25) balance c/d 18900
gross profit =88000*(60/160)
=E26 =SUM(E23:E24)
Debit credit
Particluars amount Particluars amount
Cash 8700 Balance b/d 5678
balance c/d 1900 Direct material (purchase) =E34-E31
=SUM(C31:C32) =C34
Debit credit
Particluars amount Particluars amount
sales 88000 Gross prrofit =C25
Balanc c/d =E41-E39
=C39 =C41
Direct material control
Work in process
Finished Goods
Accounts Payable
Cost of goods sold
Management accounting and history:
The concepts and the process of cost account have been changed a lot in last few
decades. The current concept and proceed of cost accounting explains that costing is a crucial
element of each business to evaluate the cost per product of the company. Cost accounting is

Cost Accounting
4
proceeding by the companies through evaluating all the related aspect and the performance of
the company (Weygandt, Kimmel & Kieso, 2015). Current modern concept of accounting
explains about process of the company, it is a better way to identify the profit percentage as
well as it briefs about the variances which have occurred into the business in a particular time
period.
Figure 1
The Roman Coliseum has been studied further to evaluate the concept of cost
accounting and the structure of cost accounting. The Roman Coliseum is one of the big and
great buildings of the country; the structure of the building has been prepared by the
architecture after evaluating and figuring out all the related factors. The study on Roman
Coliseum explains that the process of cost accounting should be in a manner that it could
attract the people as well as the internal strength of the company could also be built. Thus, it
has been found that the modern accounting could be applied in current scenario of the
business to make the changes into the structure of the company for good
Process costing:
Normal Solution:
Casablanca Limited
Production Report
Process 1 Physical Equivalent Units Total
Flows Material Labour