UNIVERSITY OF TECHNOLOGY, JAMAICA
COLLEGE OF BUSINESS AND MANAGEMENT
SCHOOL OF BUSINESS ADMINISTRATION
Module Name:
Module Code:
Introduction to Costing
ACC3002
Semester 2, Academic Year 2022/23
Facilitators: Kadiesha Turlounge (kadiesha.turlounge@utech.edu.jm), Rosemarie DixonDoldron (rdixon-doldron@utech.edu.jm).
Note: This schedule is a guide to help you prepare for our sessions together. Adjustments may be
required based on unforeseen circumstances.
Week
1
Unit
1
Lecture and tutorial topics
▪ Inventory control – ordering, receipt, storage and issue of raw materials
▪ Bin card, purchase requisition, materials requisition note, purchase order, GRN.
▪ Free inventory
▪ Perpetual inventory systems, periodic and continuous stocktaking
▪ Inventory control levels - minimum, maximum and reorder level, buffer stocks
2
1
▪
▪
EOQ model – with/without discounts, assumptions, usefulness, limitations
Economic batch quantity
3
1
▪
▪
▪
EOQ model – with/without discounts
Material control account
Inventory valuation - FIFO, AVCO
4
2
▪
▪
▪
▪
▪
Production and productivity
Efficiency, capacity and production volume ratios
Labour turnover – definition, reasons, ratio
The costs of labour turnover – replacement and preventative costs
Prevention of high labour turnover
5
2
▪
▪
▪
▪
Remuneration methods – time work, piecework, bonus/incentive schemes, high
day-rate system, individual bonus, group bonus and profit-sharing schemes
Recording labour costs
The wages control account
Direct and indirect labour costs
▪
▪
▪
▪
▪
Classification of overhead costs
The purpose of overhead cost allocation
Absorption costing stages – allocation, apportionment, absorption
Overhead analysis sheet
Reapportionment of service department costs (Stage 2 apportionment)
6
3
7
3
▪
▪
The reciprocal (repeated distribution) method of apportionment
The reciprocal (algebraic) method of apportionment
8
3
▪
▪
▪
▪
▪
Calculation of overhead absorption rates
Choosing the appropriate absorption base – Blanket and Departmental OARs
Under/over-absorption of overheads
Reasons for over/under absorbed overhead
Ledger entries relating to overheads
9
4
•
•
•
•
•
•
•
Costing methods
Job costing
Batch costing
Service costing vs. product costing
Specific characteristics of services
Unit cost measures
Service cost analysis
10
5
•
•
•
•
Contribution
The principles of marginal costing
Marginal costing and absorption costing and the calculation of profit
Reconciling profits
11
6
•
•
•
•
•
Features of process costing
Process accounts
Framework for dealing with process costing
Losses in process costing (normal and abnormal loss and abnormal gain)
Losses with scrap value
12
6
•
•
•
•
•
Losses with a disposal cost
Valuing closing work in process (WIP)
Equivalent units
Valuing opening WIP – FIFO method
Valuing opening WIP – Weighted average cost method
13
7
•
•
•
•
Joint and by-products
Dealing with common costs
Joint products in process accounts
Accounting for by-products
COURSEWORK ASSESSMENTS - (Subject to change)
Test 1: February 25, 2023. Time: 5 p.m. – 10 p.m. (Based on units 1 and 2)
Test 2: March 25, 2023. Time: 5 p.m. – 10 p.m. (Based on units 3 and 4)
Project: Date: TBA (Group work on all units)
Final Assessment: Date and time TBA
15%
20%
15%
50%