Recording System-Illustration Cost Accounting-I Recording System-Illustration

Cost Accounting Recording System 7/A Costs Production Costs 710. Direct Material 711. Direct Material Applied 720. Direct Labor 721. Direct Labor Applied 730. Manufacturing (Factory) Overhead 731. Manufacturing Overhead Applied 740. Service Costs 741. Service Costs Applied Period Costs 750. Research and Development Costs 751. Research and Development Costs Applied 760. Marketing Selling and Distributing Costs 761. Marketing Selling and Distributing Costs Applied 770. General Administrative Costs 771. General Administrative Costs Applied 780. Finance Costs 781. Finance Costs Applied Cost Accounting Recording System 7/A Balance Sheet or Income Statement 151. Work-in Progress 152. Finished Goods 620. Cost of Goods Sold Income Statement 622. Service Costs 630. Research and Development Costs 631. Marketing Selling and Distributing Costs 632. General Administrative Costs 660. Finance Costs

STATEMENT OF COST OF GOODS SOLD TL Cost Of Direct Material (+)   Cost Of Beginning Raw Material (+) Net Purchases (+) Cost Of Ending Raw Material (-) Direct Labor Wages (+) Factory Overheads (+) Indirect Materials Indirect Labor Depreciation On Factory Building Depreciation On Factory Equipment Insurance Repairs And Maintenance Other Factory Overheads   Current Period’s Total Cost Work-in-progress (Beginning) (+) Work-in-progress (Ending) (-) Current Period’s Cost of Finished Goods Finished Goods (Beginning) (+) Finished Goods (Ending) (-) Cost of Goods Sold

Cost Accounting Recording System Illustration During the month of December 2003, the following transactions were completed by the factory of Batısan Co. Ltd. launching in December 20X1. On 1st December, the company purchased raw materials at a cost of TL 40.000 where one half was paid for cash and the other half was on credit. On 12th December some of finished goods that produced until that day were sold at a price of TL 22.000, and received TL 10.000 in check and TL 12.000 in 61 day term note. On 20th December, the company sold finished goods on account for TL 94.000. Bu örnek uygulamanın Türkçesi için bkz. Prof. Dr. Kamil Büyükmirza, Maliyet ve Yönetim Muhasebesi A.3.2.

Cost Accounting Recording System Illustration According to the payroll register prepared on 31th December, accrued gross wages of factory workers were TL 25.000 for December. Of the total salaries, employee’s social security and unemployment insurance premium of TL 3.000, and income taxes and stamp duty of TL 5.500 were withheld from gross pay. Employer’s share of social security and unemployment insurance premium was TL 5.000. 40% of gross wages is direct and 60% of gross wages is indirect labor cost. Also, employer’s premiums are classified as indirect labor cost.

Cost Accounting Recording System Illustration According to the material issue note (ambar çıkış belgesi) of December, the consumption of materials inventory was TL 20.000 directly and TL 8.000 indirectly for production. Estimated electricity consumption for December was TL 3.000. Factory building, whose construction was completed on November 20X1, costed TL 600.000 with %2 depreciation rate. The company acquired machines, which were assembled on December 20X1, for TL 300.000 with a depreciation rate of 20%. Straight line depreciation method is chosen.

Cost Accounting Recording System Illustration Manufacturing costs were applied to current production of December. Ascertained total cost of products completed in December was TL 32.000. Ascertained total cost of goods sold in December was TL 18.000. Required: Present the journal entries of the transactions in accordance with 7/A. Prepare the Statement Of Cost Of Goods Sold of Current Period Prepare the Income Statement of Current Period