PAMANTASAN NG CABUYAO

COLLEGE OF BUSINESS, ACCOUNTANCY AND ADMINISTRATION

COST ACCOUNTING AND CONTROL (ACC111)

Course Description

This course is designed to orient the students to the cost accounting framework of business. It
introduces the concepts of cost accounting as differentiated from financial accounting. Cost control
concepts, methods and techniques are interspersed in the discussion of the accounting process for
service, merchandising and manufacturing entities. Topics include cost accounting cycles; costing
accumulation methods; and cost systems; planning, accounting and control for the elements of cost.

TOPIC/ CONTENT

PRELIM

Chapter 1: Costs Concepts, Classifications and Cost Accounting Cycle

• Cost Accounting, define and uses of cost data

• Difference between cost accounting and financial accounting
• Cost Versus Expense
• Classification of costs
• Separating mixed costs
• Inventory accounts
• Inventory Systems
i. Perpetual Inventory System
ii. Periodic Inventory System
• Inventory Costing/ Valuation methods
i. First in First Out method
• The Flow of manufacturing costs
• Pro-forma Statement of Cost of Goods manufactured and sold
• Methods of accumulating product costs

Chapter 2: Accounting for Raw Materials

• Raw Materials inventory system

• Basic transactions associated with raw materials
i. Periodic Inventory System
ii. Perpetual Inventory System
• Accounting for Defective units
• Accounting for Spoiled Units
• Economic Order Quantity (EOQ)
• Just in Time and Backflush Costing

Chapter 3: Accounting for Factory Labor

• The Factory Labor

• Employees Compensation
 • Computation of Employer’s Payroll Taxes
• Time Card
• Time Ticket
• The Factory Payroll

MIDTERM

Chapter 4: Accounting for Factory Overhead

• Manufacturing Overhead Account

• Accumulating actual overhead costs
• Computation of Factory Overhead Variance
• Predetermined overhead rate
• Multiple overhead rates
• Methods of Allocating Service Costs

Chapter 5: Cost Volume Profit Analysis

• Computation of Break-even sales (units)

• Computation of Break-even sales (pesos)
• Margin of safety
• Degree of operating leverage

Chapter 6: Activity Based Costing

• Activity based costing versus traditional costing

FINALS

Chapter 7: Job Order Costing System

• Nature of job order costing
• Source Documents for Job Order Costing
• Job Cost Sheet
• Cost accounting cycle using actual and normal costing
• Production losses in job order
• Standard costing in job order

Chapter 8: Process Costing System

• Nature of process costing

• Distinction between job order and process costing
• The Conversion process
• FIFO and Weighted average method
• Cost Production Report
• Standard Costing Process Cost
• Lost/ Spoiled Units

Chapter 9: Joint Products and By-Products

• Joint Costs
 • Characteristics of Main Products
• Characteristics of By-Products
• Accounting methods for main products
• Accounting methods for by-products
• Replacement Cost method

References:

Rante G. Cost Accounting & Control 2019 Edition

De Leon N, De Leon E, De Leon G. Cost Accounting and Control 2019 Edition

Guerrero P. Cost Accounting 2018 Edition

Other Readings: Latest articles and researches on cost accounting and control