第一种区分 cost：manufacturing vs non-manufaturing
Manufacturing cost:
Direct Materials: raw materials, integral parts of finished product that can be physically and
conveniently traced to it
Indirect material
Direct labor:
Indirect labor: janitors, supervisors, materials handlers and security personnel costs
Manufacturing overhead: indirect materials； indirect labor; maintenance; repairs on
production equipment; heat and light; property taxes; depreciation and insurance on
manufacturing facilities.
Conversion cost = MOH + DL
Prime cost = DL + DM
有时候算 labor hours 会出现一些特殊情况：
Idle time(not spend on production activities)如果 manager 认为是跟 production 相关那么算
overhead；如果是 idle time 比如客户要求修改订单的时间，那么算 direct labor cost；
Overtime premium 加班费：如果是临时加班，算 direct labor cost；如果是正常高峰期，算
overhead cost
Employee benefit cost for indirect labor are overhead; for direct labor, add to DL
Non-manufacturing Costs:
Mkting cost(selling cost)
Administrative costs
第二种： Product costs vs period costs
COGS in merchandising company:
Beg inv + purchases = end invent + COGS
COGS in a manufacturing company:
Beg finished goods in + COG manufactured = end finished goods inv + COGS
第三种：variable vs fixed
第四种：indirect cost vs direct cost
Begin WIP + total manufacturing cost = End WIP + COGM
题目练习：
Ans: variable cost per unit would be unchanged but fixed cost per unit would lower
1.
Costs of goods manufactured:
Remember that Begin WIP + total manufacturing cost = End WIP + COGM
So COGM = BEG WIP + Total Manufacturing cost – End WIP = 180k + 1570k -100k = 1650k 答案对了
BEG WIP = 180k, END WIP =100k,
total manufacturing cost: = 780 k + 150 k + 640k = 1570k
Direct material: Beg Raw + Purchases – End Raw = 90k + 750k – 60k = 780k
Direct labor: 150k
MOH: indirect labor + utilities factory + depreciation factory + insurance factory + supplies
factory + maintenance factory = 300 k + 36k + 162k + 40k + 15k + 87k = 640k
2.
Costs of goods sold: Beg finished goods in + COG manufactured = end finished goods inv + COGS
So COGS = BEG FIN + COGM – END FIN = 260k + 1650k – 210k = 1700k 答案对了
3. income statement
Mitchell Company Income Statement
For year eneded last year
Sales
Less COGS
Gross profit
less selling and operating expenses
less administrative expenses
2,500,000
1,700,000
800,000
140,000
270,000
operating income (profit)
4.
390,000
1.
Calrton Company 记得 duduct 的都要加括号
Schedule of Cost of Goods Manufactured
Direct materials
Beginning raw materials
Add: Purchases of raw materials
raw materials available for use
Deduct: ending raw materials
raw materials used in production
direct labor
Manufacutring overhead
maintenance factory
depreciation, factory equipment
indirect materials, factory
25,000
130,000
155,000
(20,000)
135,000
32,500
37,000
55,000
3,000
utilities, factory
insurance, factory equipment
rent, factory building
total overhead cost
total manufacturing costs
Add: work in process inventory, beginning
Deduct: work in process inventory, ending
Costs of Goods Manufactured
26,000
4,000
45,000
170,000
337,500
24,000
(16,500)
345,000
Schedule of Costs of Goods Sold
Finished Goods, beginning
Add: Costs of Goods Manufactured
Goods available for sale
Deduct: Finished Goods, ending
Costs of Goods Sold
2.
Avg cost for DM
135,000/15,000 = 9
Avg cost for rent on the factory building
45,000/15,000 = 3
3.
DM avg cost still 9, and total cost would be 9*20,000 = 180,000
Rent total cost will still be 45,000, but avg cost would be 45,000/20,000=2.25
4.
15,000
345,000
360,000
(42,500)
317,500