Assignment On Cost Management Accounting

RUNNING HEAD: COST AND CONTROL
1
Project Report: Cost and control

COST AND CONTROL
2
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
3
Debit credit
Particulars amount Particulars amount
sales 48000 Gross profit 18000
Balance c/d 30000
48000 48000
Formula View:
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
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
Manual solution:

COST AND CONTROL
4

COST AND CONTROL
5
b. Management accounting and history:

COST AND CONTROL
6
Cost management accounting has been changed with a great level from earlier
concepts. Currently, the concept of cost accounting depict that the cost accounting is an
essential part of accounting of manufacturing companies and thus all related aspect must be
taken into consideration for the betterment of the results. Modern cost accounting concept
depict that the company must look over the budgeting report, various internal and external
aspects, variances etc which could help the company to manage and maintain the extra cost of
the company.
Further, study has been conducted over the great pyramid of Giza to analyze the
concept of modern cost accounting in a great manner (Garrison et al, 2010). Through this
study, it has been found that the great pyramid of Giza had once felled into the category of 7
wonders of the world. This structure has been made by human hands and it is the biggest
structure of this type. Currently a study has been conducted over great pyramid of Giza to
analyze the modern costing concept and it has been analyzed that various aspects and related
factors have been discussed while making this great pyramid of Giza and thus in the modern
cost accounting, if the accountant would look over entire related aspect than it would be easy
for the company to reduce the level of expenses.
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