Comprehensive Project Report: Cost Accounting Job Costing Analysis

This project report delves into various aspects of cost accounting, presenting detailed analyses of job costing, process costing, and joint costing methods. It includes comprehensive calculations of direct material control, work in process, and finished goods, using both tabular and formulaic solutions. The report extends to variance analysis, demonstrating the calculation of material purchase price and usage variances, along with direct labor variances. Furthermore, it incorporates a business report that emphasizes the importance of variance analysis in evaluating organizational performance, maintaining costs, and forecasting future outcomes. The report provides a robust understanding of cost accounting principles and their practical application within a business context.

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

Cost Accounting
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Cost Accounting
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Management accounting & history:
Cost accounting is a part of accounting. The main process of cost accounting is to
record, classify, analyze, summarize and allocate the different alternative actions to control
over the cost of an organization. Management accounting evaluated direct expenses and
indirect expenses of a production house to identify the total cost and the total profit of an
organization. The main goal of cost accounting is to offer an advice to management about the
efficiency and capability of organization to manage the cost. Cost accounting is basically
used by an organization to manage the internal functions and the report of cost accounting
cannot be compared with the other organization. Earlier, cost accounting used t concentrate
on fewer concepts but with the time, numerous changes have occurred into the financial
position of an organization. Currently, the cost accounting process evaluates all the relevant
factor of an organization and advises the managers accordingly (Garrison et al, 2010).
Further, various changes have made in Roman Coliseum in last few years. These
changes have made the building more beautiful and the travellers average has also been

Cost Accounting
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enhanced. It explains that the continuous changes into a place, thing, process etc make it
more beautiful and useful. The same concept goes for the cost accounting. After the changes
into the process and the technique of cost accounting, the process start offering better advises
to the management of the company. It leads to a conclusion that the current changes are better
in cost accounting and the time to time changes into the process would make the process best.
Figure 1
Process costing:
Normal Solution:
Casablanca Limited
Production Report
Process 1 Physical Equivalent Units Total
Flows Material Labour
Units to account for:
From beginning WIP 5600
Units started during the year 45600
Total units to account for 51200
Units accounted for:
Completed and transferred 45600 45600 45600

Cost Accounting
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out
Ending WIP
Total units accounted for 51200
Total equivalent Units 45600 45600
Summary of cost to be
accounted for
Cost of beginning WIP 45600
Cost incurred during the period 118700 187700
Total cost to be accounted for 45600 118700 187700
Calculation of cost per
equivalent unit
Total cost to be accounted for 45600 118700 187700
Total equivalent units 45600 45600
2.60 4.12
Assign cost to unit transferred
out and units in ending WIP
Cost assigned to unit transfer out 118700 187700 306400
cost assigned to ending WIP
inventory 25614 40504 66118
Total cost accounted for 372518
Work in process a/c
Opening balance 5600
Closing
balance 28560
transfer 22960
28560 28560
Formula solution:

Cost Accounting
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C D E F G H
Process 1 Physical Total
Flows Material Labour
Units to account for:
From begining WIP 5600
Units started during the year 45600
Total units to account for =E11+E12
Units accounted for:
Completed and transferred out 45600 =E16 =F16
Ending WIP
Total units accounted for =E13
Total equivalent Units =F16+F17 =G16+G17
Summary og cost to be accounted for
Cost of begining WIP 45600
Cost incurred during the period 118700 187700
Total cost to be accunted for =E23 =F24 =G24
Calculation of cost per equivalent unit
Total cost to be accounted for =E25 =F25 =G25
Total quivalent units 45600 45600
=F29/F30 =G29/G30
Assign cost to unit transferred out and units in ending WIP
Cost assigned to unit transfer out =F31*F16 =G31*G16 =F35+G35
ost assined to ening WIP inventory =(32800*30%)*F31 =(32800*30%)*G31 =F36+G36
Total cost accounted for =H35+H36
Opening balance 5600 Closing balance =D42+D43
transfer =32800*70%
=D42+D43 =F42
Casablanca Limited
Production Report
Equivalent Units
Work in process a/c

Cost Accounting
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Joint costing:

Cost Accounting
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Normal Solution:
A)
Product A Product B
Material 60000 40000
Cost
$
1,87,500
$
1,62,500
Further
Processing
$
45,000
$
25,000
Total cost
$
2,32,500
$
1,87,500
Total units 60000 40000
Cost per unit
$
3.88
$
4.69
Sellinf price per
unit
$
4.50
$
5.44
Gross margin rate 16.13% 16.13%
B)
Product A Product B
Material 60000 40000
Cost
$
1,87,500
$
1,62,500
Total cost
$
1,87,500
$
1,62,500
Total units 60000 40000
Cost per unit
$
3.13
$
4.06
Sellinf price per
unit
$
2.00
$
4.72
Gross margin rate -36.00% 16.13%
$ -
67,500.00
Formula solution:
A)

Cost Accounting
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B C D
Product A Product B
Material 60000 40000
Cost 187500 =350000-C5
Further Processing 45000 25000
Total cost =C5+C6 =D5+D6
Total units =C4 =D4
Cost per unit =C7/C8 =D7/D8
Sellinf price per unit 4.5 =D9*116.13%
Gross margin rate =(C10-C9)/C9 =(D10-D9)/D9
b)
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G H I
Product A Product B
Material 60000 40000
Cost =C5 =D5
Total cost =H5+H6 =I5+I6
Total units =H4 =I4
Cost per unit =H7/H8 =I7/I8
Sellinf price per unit 2 =I9*116.13%
Gross margin rate =(H10-H9)/H9 0.1613
=H8*(H10-H9)

Cost Accounting
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Suggestions: