Managerial Accounting
and Cost Concepts
Chapter 2 Bag 1
© 2012 McGraw-Hill Education (Asia)
Work of Management
Perencanaan
Pengarahan dan
Motivasi
Kontrol
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 2
Planning
Identifikasi
Alternatif.
Memilih alternative yang
Sesuai dgn tujuan organasi.
Menetapkan anggaran
Untuk membantu pelaksanaan
Alternatif yg dipilih
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 3
Directing and Motivating
Directing and motivating meliputi pengaturan
aktivitas harian agar organisasi berjalan dengan
baik.




Penugasan kerja karyawan.
Preses pemecahan masalah.
Menyelesaikan konflik.
Komunikasi efektif.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 4
Controlling
Fungsi utama dari pengawasan adalah untuk
mengawasi pelaksanaan pekerjaan sesuai rencana.
Masukan dari laporan kinerja yang membandingkan
Antara anggaran dan biaya actual merupakan
bagian yang sangat penting dari proses kontrol.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 5
Planning and Control Cycle
Memformulasi
perencanaan jk
pendek dan jk
panjang (Planning)
Perbandignan
antara hasil dan
rencana
(Controlling)
Decision
Making
Begin
Pelaksanaan
rencana (Directing
and Motivating)
Pengukuran kinerja
(Controlling)
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 6
Learning Objective 1
Identify the major
differences and similarities
between financial and
managerial accounting.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 7
Comparison of Financial and Managerial
Accounting
Financial Accounting
Managerial Accounting
External persons who
make financial decisions
Managers who plan for
and control an organization
Historical perspective
Future emphasis
3. Verifiability
versus relevance
Emphasis on
verifiability
Emphasis on relevance
for planning and control
4. Precision versus
timeliness
Emphasis on
precision
Emphasis on
timeliness
5. Subject
Primary focus is on
the whole organization
Focuses on segments
of an organization
6. GAAP
Must follow GAAP
and prescribed formats
Need not follow GAAP
or any prescribed format
Mandatory for
external reports
Not
Mandatory
1. Users
2. Time focus
7. Requirement
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 8
Learning Objective 2
Identify and give examples
of each of the three basic
manufacturing cost
categories.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 9
Manufacturing Costs
Direct
Materials
Direct
Labor
Manufacturing
Overhead
The Product
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 10
Direct Materials
Bahan baku yang menjadi bagian utama dari
produk dan dapat dengan mudah ditelusuri
langsung ke produknya.
Example: Mesin yang dipasang di mobil
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 11
Direct Labor
Biaya tenaga kerja yang dengan mudah
ditelusuri langsung ke produk
Example: gaji pekerja perakitan mobil
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 12
Manufacturing Overhead
Biaya Manufaktur yang tidak dapat ditelusuri
langsung ke unit produk yang dihasilkan.
Examples: Indirect materials and indirect labor
Bahan baku yang digunakan
untuk membantu proses
produksi.
Examples: lubricants and
cleaning supplies used in the
automobile assembly plant.
McGraw-Hill Education (Asia)
Gaji yang dibayarkan kepada
karyawan yang tidak secara
langsung terlibat dalam proses
produksi.
Examples: maintenance
workers, janitors and security
guards.
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 13
Nonmanufacturing Costs
Biaya
Penjualan
Biaya
Administratif
Biaya yang harus
dikeluarkan untuk
memenuhi pesanan dan
mengantar produk
Semua executive,
Organisasi, and biaya
admin.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 14
Learning Objective 3
Distinguish between
product costs and period
costs and give examples
of each.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 15
Product Costs Versus Period Costs
Product costs include
direct materials, direct
labor, and
manufacturing
overhead.
Period costs include all
selling costs and
administrative costs.
Cost of Good Sold
Inventory
Expense
Sale
Balance
Sheet
McGraw-Hill Education (Asia)
Income
Statement
Garrison, Noreen, Brewer, Cheng & Yuen
Income
Statement
Slide 16
Quick Check 
Which of the following costs would be considered a
period rather than a product cost in a manufacturing
company?
A. Manufacturing equipment depreciation.
B. Property taxes on corporate headquarters.
C. Direct materials costs.
D. Electrical costs to light the production
facility.
E. Sales commissions.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 17
Quick Check 
Which of the following costs would be considered a
period rather than a product cost in a manufacturing
company?
A. Manufacturing equipment depreciation.
B. Property taxes on corporate headquarters.
C. Direct materials costs.
D. Electrical costs to light the production
facility.
E. Sales commissions.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 18
Classifications of Costs
Manufacturing costs are often
classified as follows:
Direct
Material
Direct
Labor
Prime
Cost
McGraw-Hill Education (Asia)
Manufacturing
Overhead
Conversion
Cost
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 19
Comparing Merchandising and
Manufacturing Companies
Merchandisers . . .
 Membeli
produk
jadi.
 Menjual produk
jadi.
Manufacturers . . .
 Membeli
Baku.
 Membuat dan
menjual produk
jadi.
MegaLoMart
McGraw-Hill Education (Asia)
McGraw-Hill/Irwin
Bahan
Garrison, Noreen, Brewer, Cheng & Yuen
Balance Sheet
Merchandiser
Current assets
Manufacturer
Current Assets
 Cash
 Cash
 Receivables (pendapatan)
 Receivables
(pendapatan)
 Merchandise Inventory
(Persediaan barang dagangan)
McGraw-Hill Education (Asia)
 Inventories
• Raw Materials
• Work in Process
• Finished Goods
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 21
Balance Sheet
Merchandiser
Current assets
Manufacturer
Current Assets
 Cash
 Cash
 Receivables
 Merchandise Inventory
Partially complete
products – some material,
labor, or overhead has
been added.
Materials waiting to
 Receivables
be processed.
 Inventories
• Raw Materials
• Work in Process
• Finished Goods
Completed products
awaiting sale.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 22
Learning Objective 4
Prepare an income
statement including
calculation of the cost of
goods sold.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 23
The Income Statement
Harga Pokok Produksi antara perusahaan produksi dan
perusahaan dagang hanya berbeda sedikit.
Merchandising Company
Cost of goods sold:
Beg. merchandise
inventory
$ 14,200
+ Purchases
234,150
Goods available
for sale
$ 248,350
- Ending
merchandise
inventory
(12,100)
= Cost of goods
sold
$ 236,250
McGraw-Hill Education (Asia)
Manufacturing Company
Cost of goods sold:
Beg. finished
goods inv.
$ 14,200
+ Cost of goods
manufactured
234,150
Goods available
for sale
$ 248,350
- Ending
finished goods
inventory
(12,100)
= Cost of goods
sold
$ 236,250
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 24
Basic Equation for Inventory Accounts
Beginning
balance
McGraw-Hill Education (Asia)
+
Additions
to inventory
=
Ending
balance
Garrison, Noreen, Brewer, Cheng & Yuen
+
Withdrawals
from
inventory
Slide 25
Quick Check 
If your inventory balance at the beginning of the
month was $1,000, you bought $100 during the
month, and sold $300 during the month, what would
be the balance at the end of the month?
A. $1,000.
B. $ 800.
C. $1,200.
D. $ 200.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 26
Quick Check 
If your inventory balance at the beginning of the
month was $1,000, you bought $100 during the
month, and sold $300 during the month, what would
be the balance at the end of the month?
A. $1,000.
B. $ 800.
C. $1,200.
D. $ 200.
McGraw-Hill Education (Asia)
$1,000 + $100 = $1,100
$1,100 - $300 = $800
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 27
Learning Objective 5
Prepare a schedule of cost
of goods manufactured.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 28
Schedule of Cost of Goods Manufactured
Memperhitungkan biaya
bahan baku, tenaga kerja dan
biaya overhead yang
digunakan pada kegiatan
produksi
Memperhitungkan biaya
produksi berhubungan
dengan jumlah barang yang
telah selesai diproduksi
dalam satu periode.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 29
Product Cost Flows
Raw Materials
+
=
–
=
Beginning raw
materials inventory
Raw materials
purchased
Raw materials
available for use
in production
Ending raw materials
inventory
Raw materials used
in production
McGraw-Hill Education (Asia)
Manufacturing
Costs
Work
In Process
Direct materials
As items are removed from raw
materials inventory and placed into
the production process, they are
called direct materials.
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 30
Product Cost Flows
Raw Materials
+
=
–
=
Beginning raw
materials inventory
Raw materials
purchased
Raw materials
available for use
in production
Ending raw materials
inventory
Raw materials used
in production
McGraw-Hill Education (Asia)
Manufacturing
Costs
Direct materials
+ Direct labor
+ Mfg. overhead
= Total manufacturing
costs
Garrison, Noreen, Brewer, Cheng & Yuen
Work
In Process
Conversion
costs are costs
incurred to
convert the
direct material
into a finished
product.
Slide 31
Product Cost Flows
Raw Materials
+
=
–
=
Beginning raw
materials inventory
Raw materials
purchased
Raw materials
available for use
in production
Ending raw materials
inventory
Raw materials used
in production
McGraw-Hill Education (Asia)
Manufacturing
Costs
Direct materials
+ Direct labor
+ Mfg. overhead
= Total manufacturing
costs
Work
In Process
Beginning work in
process inventory
+ Total manufacturing
costs
= Total work in
process for the
period
All manufacturing costs incurred
during the period are added to the
beginning balance of work in
process.
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 32
Product Cost Flows
Raw Materials
Manufacturing
Costs
Beginning raw
Direct materials
materials inventory
+ Direct labor
+ Raw materials
+ Mfg. overhead
purchased
= Total manufacturing
= Raw materials
costs
available for use
in production
– Ending raw materials
inventory
Costs
associated with the goods that
= Raw materials used
areincompleted
during the period are
production
transferred to finished goods
inventory.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Work
In Process
+
=
–
=
Beginning work in
process inventory
Total manufacturing
costs
Total work in
process for the
period
Ending work in
process inventory
Cost of goods
manufactured
Slide 33
Product Cost Flows
Work
In Process
+
=
–
=
Beginning work in
process inventory
Manufacturing costs
for the period
Total work in process
for the period
Ending work in
process inventory
Cost of goods
manufactured
McGraw-Hill Education (Asia)
Finished Goods
Beginning finished
goods inventory
+ Cost of goods
manufactured
= Cost of goods
available for sale
- Ending finished
goods inventory
Cost of goods
sold
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 34
Manufacturing Cost Flows
Costs
Balance Sheet
Inventories
Material Purchases
Raw Materials
Direct Labor
Work in
Process
Manufacturing
Overhead
Selling and
Administrative
McGraw-Hill Education (Asia)
Finished
Goods
Period Costs
Garrison, Noreen, Brewer, Cheng & Yuen
Income
Statement
Expenses
Cost of
Goods
Sold
Selling and
Administrative
Slide 35
Quick Check 
Beginning raw materials inventory was $32,000.
During the month, $276,000 of raw material was
purchased. A count at the end of the month revealed
that $28,000 of raw material was still present. What
is the cost of direct material used?
A.
$276,000
B.
$272,000
C.
$280,000
D.
$ 2,000
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 36
Quick Check 
Beginning raw materials inventory was $32,000.
During the month, $276,000 of raw material was
purchased. A count at the end of the month revealed
that $28,000 of raw material was still present. What
Beg.used?
raw materials
$ 32,000
is the cost of direct material
+ Raw materials
A.
$276,000
purchased
276,000
= Raw materials available
B.
$272,000
for use in production $ 308,000
C.
$280,000
– Ending raw materials
28,000
D.
$ 2,000 = Rawinventory
materials used
in production
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
$ 280,000
Slide 37
Quick Check 
Direct materials used in production totaled
$280,000. Direct labor was $375,000 and
factory overhead was $180,000. What were total
manufacturing costs incurred for the month?
A.
$555,000
B.
$835,000
C.
$655,000
D.
Cannot be determined.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 38
Quick Check 
Direct materials used in production totaled
$280,000. Direct labor was $375,000 and
factory overhead was $180,000. What were total
manufacturing costs incurred for the month?
A.
$555,000
B.
$835,000
C.
$655,000 Direct Materials
$ 280,000
Direct Labor
375,000
D.
Cannot be+determined.
+ Mfg. Overhead
= Mfg. Costs Incurred
for the Month
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
180,000
$ 835,000
Slide 39
Quick Check 
Beginning work in process was $125,000.
Manufacturing costs incurred for the month
were $835,000. There were $200,000 of
partially finished goods remaining in work in
process inventory at the end of the month.
What was the cost of goods manufactured
during the month?
A.
$1,160,000
B.
$ 910,000
C.
$ 760,000
D.
Cannot be determined.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 40
Quick Check 
Beginning work in process was $125,000.
Manufacturing costs incurred for the month
were $835,000. There were $200,000 of
partially finished goods remaining in work in
Beginning
workmonth.
in
process inventory at the end
of the
process inventory
$ 125,000
What was the cost of goods
manufactured
+ Mfg. costs incurred
for the period
835,000
during the month?
work in process
A.
$1,160,000 = Total
during the period
$ 960,000
B.
$ 910,000 – Ending work in
inventory
200,000
C.
$ 760,000 = Costprocess
of goods
manufactured
$ 760,000
D.
Cannot be determined.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 41
Quick Check 
Beginning finished goods inventory was
$130,000. The cost of goods manufactured for
the month was $760,000. And the ending
finished goods inventory was $150,000. What
was the cost of goods sold for the month?
A. $ 20,000.
B. $740,000.
C. $780,000.
D. $760,000.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 42
Quick Check 
Beginning finished goods inventory was
$130,000. The cost of goods manufactured for
the month was $760,000. And the ending
finished goods inventory was $150,000. What
was the cost of goods sold for the month?
A. $ 20,000.
B. $740,000.
$130,000 + $760,000 = $890,000
C. $780,000.
$890,000 - $150,000 = $740,000
D. $760,000.
McGraw-Hill Education (Asia)
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 43