Management Accounting and History | Project Report

RUNNING HEAD: COST AND CONTROL
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Project Report: Cost and control

COST AND CONTROL
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Job costing:
a. Solution:
Normal View:
Direct material control
Debit credit
Particulars amount Particulars amount
balance b/d 23655 WIP 4810
Purchase 6155 balance c/d 25000
29810 29810
Work in process
Debit credit
Particulars amount Particulars amount
Balance b/d 6700
Direct Material 4810 Finished goods 30110
Labour 14800 balance c/d 8200
Factory overhead 12000
38310 38310
Finished Goods
Debit credit
Particulars amount Particulars amount
Balance b/d 8790 Sales 48000
WIP 30110 balance c/d 8900
gross profit 18000
56900 56900
Accounts Payable
Debit credit
Particulars amount Particulars amount
Balance b/d 2345
Cash 6700
Direct material
(purchase) 6155
balance
c/d 1800
8500 8500
Cost of goods sold

COST AND CONTROL
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Debit credit
Particulars amount Particulars amount
sales 48000 Gross profit 18000
Balance c/d 30000
48000 48000
Formula View:
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B C D E
Debit credit
Particluars amount Particluars amount
balance b/d =C9-C7 WIP 4810
Purchase =J7 balance c/d 25000
=E9 =SUM(E6:E7)
Debit credit
Particluars amount Particluars amount
Balance b/d 6700
Direct Material =C18-(C16+C17+C14) Finished goods =C24
Labor =3700*4 balance c/d =(1200+7000)
Factory overhead =12000
=E18 =SUM(E15:E16)
Debit credit
Particluars amount Particluars amount
Balance b/d 8790 Sales 48000
WIP =C26-(C23+C25) balance c/d 8900
gross profit =48000*(60/160)
=E26 =SUM(E23:E24)
Direct material control
Work in process
Finished Goods
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G H I J
Debit credit
Particluars amount Particluars amount
Balance b/d 2345
Cash 6700 Direct material (purchase) =J9-J6
balance c/d 1800
=SUM(H7:H8) =H9
Debit credit
Particluars amount Particluars amount
sales 48000 Gross prrofit =C25
Balanc c/d =J16-J14
=H14 =H16
Accounts Payable
Cost of goods sold

COST AND CONTROL
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Manual solution:

COST AND CONTROL
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b. Management accounting and history:

COST AND CONTROL
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Modern cost management accounting is a procedure to record, classify, analyze,
summarize, allocate and evaluate the numerous alternative course of control over cost and
action regarding that. Modern concept of cost management depict that an organization must
consider every aspect while preparing the report of cost accounting. This would help the
company to manage the variances and would also assist to reduce the level of variances.
Such as if great pyramid of Giza is taken into consideration than it has been found that
due to a great power of prediction, the biggest structure in the worldwide which has been
made by hands of human. For preparing this structure, the high technique and prediction
power has been used by the humans and currently it shows their high prediction power and
the scientific techniques which had helped them to make the 7 wonders of the world (Snyder
and Davenport, 2013). The concept of modern cost management has also been prepared
according to that concept only. This depict that the modern cost accountant of the company
must look over various aspects so that the prediction could be made according to the great
pyramid of Giza and company could enjoy the high growth in the market.
Process Costing:
Normal View:
Company Name
Production Report
Process 1 Physical Equivalent Units Total
Flows Material Conversion
Units to account for:
From beginning WIP 2000 600 600
Units started during the year 6000 6000 6000
Total units to account for 8000
Units accounted for:
Completed and transferred
out 7000 7000 7000
Ending WIP 1000 1000 500
Total units accounted for 8000
Total equivalent Units 8000 7500
Cost to accounts for: