Process Cost

CHAPTER Systems

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 Accounting for Process Manufacturers
(slide 1 of 2)

A process manufacturer （流程生产商）

produces products that are indistinguishable from
each other using a continuous production process.
Examples of process manufacturers include:
Oil refineries 炼油工业
Paper producers 造纸商
Chemical processors 化学试剂
Aluminum smelters 铝
The cost accounting system used by process
manufacturers is called the process cost
system （分步成本计算法） .
A process cost system records product costs for each
manufacturing department or process.
 Accounting for Process Manufacturers
(slide 2 of 2)

A job order manufacturer （分批生产

商） produces custom products 定制产品 for
customer or 一批产品 batches of similar products.
Examples of job order manufacturers include:
Wedding invitations 结婚请柬
Furniture manufacturers

The cost accounting system used by process

manufacturers is called the job order cost system.
A job order cost system records product cost for
each job, using job cost sheets.
Examples of Process Cost
and Job Order Companies

百事

分步生产公司 分批生产公司
产品都是一样的，每 每个电影独特设计， nike 运动员穿，
一步难以人为切割 高尔夫课程定制，公关广告定制。
Physical Flows for a Process
Manufacturer

流程生产商的成本流动

材料 -- 配制部门 -- 包装部门 -- 产成品存货

 Cost of Production Report

The cost of production report （生产成本报

告） summarizes the production and cost data
for a department as follows:
The units the department is accountable for and the
disposition of those units.

The product costs incurred by the department and

the allocation of those costs between completed
(transferred out) and partially completed units.
10 元 完成 70% ， 7 元 为约当成本
 Cost of Production Report

Preparing a cost of production report requires making a

cost flow assumption.
Like merchandise inventory, costs can be assumed to
flow through the manufacturing process using the first-
in, first-out (FIFO), last-in, first-out (LIFO), or
average cost methods.
 Step 1: Determine the Units to Be
Assigned Costs

第一步：确定成本计算单位
The first step is to determine the units to be
assigned costs:

A unit can be any measure of completed production

such as tons, gallons, pounds, barrels, or cases.
For Frozen Delight, a unit is a gallon of ice cream
 Step 2: Compute Equivalent Units of Production

第二步：计算约当产量
Whole units （总产量） are the number of units in
production during a period, whether completed or
not.

Equivalent units 约当成本 of production （约当产量）

are the portion of whole units that are complete with
respect to either materials or conversion (direct
labor and factory overhead) costs.
 Step 2: Compute Equivalent
Units of Production
Assume that a 1,000-gallon batch (vat) of ice cream at
Frozen Delight is only 40% complete in the mixing
process on May 31. Thus, the batch 一批 is only 40%
complete as to conversion costs such as power. In this
case, the whole units and equivalent units of
production are as follows:
 Step 3: Determine the Cost per
Equivalent Unit 一个约当单位的 conversion
cost 转换成本 0.3
(
• 第三步：计算约当单位成本
直接材料成本 1.1
• The direct materials and conversion costs per
equivalent unit are computed as follows:
Step 4: Allocate Costs to Units Transferred

Out and Partially Completed Units

将成本在完工产品和未完工产品之间分配
Product costs must be allocated to the units
transferred out and the partially completed units on
hand at the end of the period. 产成品 部分完工品

The product costs are allocated using the costs per

equivalent unit for materials and conversion costs that
were computed in Step 3.
 Preparing the Cost of Production Report

A cost of production report is prepared for each

processing department at periodic intervals.

The report summarizes the following production

quantity and cost data:

The units for which the department is accountable

and the disposition of those units

The production costs incurred by the department and

the allocation of those costs between completed
(transferred out) and partially completed units
 Lean Manufacturing

• Lean manufacturing （精益生产） is a management

approach that produces products with high quality,
low cost, fast response, and immediate
availability.
• Lean manufacturing obtains efficiencies and
flexibility by reorganizing the traditional
production process. 丰田实现零库存 保证零部件完
整 无缺陷
• 准时制生产 Just-in-time processing
 Traditional Production Process
(slide 1 of 2)

With a traditional manufacturing process,

workers are assigned a specific job, which is
performed repeatedly as unfinished products are
received from the preceding department.
The product moves from process to process as each
function or step is completed.
Traditional Production Line 家具制造商

切割 - 钻孔 - 打磨 - 着色 - 上漆 - 装饰 - 组装
Lean Manufacturing Production Process
(slide 1 of 4)

In lean manufacturing 精益生产 , processing functions

are combined into work centers, sometimes
called manufacturing cells （制造中心） .

These work centers complete several functions.

Thus, workers are often cross-trained 交叉培训 不止
一种技能 to perform more than one function. 学习多
个职能

佳能： work group ：每个人都要完成好几个 functions

 Lean Manufacturing Production Process
(slide 2 of 4)
精益生产
• For example, a furniture manufacturer might 工业 4.0 实现产品定制
reorganize the seven steps (traditional production 化
process) used to produce a chair into the 根据客户需求（调研喜
following three work centers: 欢什么颜色汽车 大一点
的？）
• 七个生产部门被重组为三个工作中心 xiaomi ：生产定制化
• 1.Work Center 1 performs the cutting, drilling, and
community business 社区
sanding functions. 切割 钻孔 打磨
化商业模式
• 2.Work Center 2 performs the staining and 阿里有很多分支
varnishing functions. 着色 刷漆
• 3.Work Center 3 performs the upholstery and
assembly functions. 组装 贴壁纸
Lean Production Line

Lean manufacturing
 Lean Manufacturing Production Process
(slide 3 of 4)

The activities supporting the manufacturing

process are called service activities.
支持生产流程的业务活动叫做服务活动
For example, repair and maintenance of manufacturing
equipment are service activities.
In lean manufacturing process, service activities may
be assigned to individual work centers, rather
than to centralized service departments.

服务活动被分配至每个独立的工作中心
每个部门派一个 business partner
 Lean Manufacturing Production Process
(slide 4 of 4)

In lean manufacturing, the product is often placed on

a movable carrier that is centrally located in the work
center. After the workers have completed their
activities with the product, the entire carrier and
any additional materials are moved 立刻清空 生产
另外一批 just in time to satisfy the demand or need of
the next work center.
 Yield
(slide 1 of 2)
• 产出率
• In addition to unit costs, managers of process
manufacturers are also concerned about yield.
• The yield is computed as follows:

产出率 = 产出材料数量 / 投入材料数量

 Yield
(slide 2 of 2)

Assume that 1,000 pounds of sugar enter the

Packaging Department, and 980 pounds of sugar
were packed. The yield 产出率 is computed as
follows:
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