1. Cost Accounting-I
Recording System

2. What is Cost Accounting?
Cost accounting is a quantitative method that accumulates, classifies, summarizes and interprets information for three major purposes,
operational planning and control,
making decision and
product decision process.

3. What is Cost Accounting?
Cost accounting process involves
collecting,
analyzing,
summarizing and
evaluating various alternative courses of action.

4. The Place of Cost Accounting in Accounting Information System
Financial Accounting
Management Accounting
Cost Accounting
Cost accounting involve both recording, evaluating and calculating techniques in calculating total and unit costs.

5. Cost Accounting Recording System
Uniform Accounting System (Uniform Chart of Accounts)
Balance Sheet Accounts (1-5)
Cost Accounts
(7/A-7/B)
Other Accounts
Income Statement Accounts
(6)
The costs are to be recorded alternatively on the basis of function (7/A) or nature (7/B) acc. to Uniform Accounting System. 7/A accounts classify costs by their function and 7/B by their nature.

6. Cost Accounting Recording System
Uniform Accounting System (Uniform Chart of Accounts)
Balance Sheet Accounts (1-5)
Cost Accounts
(7/A-7/B)
Other Accounts
Income Statement Accounts
(6)
In Turkey, 7/A alternative is commonly used in recording costs. In 7/A accounts has been grouped according to function as; production costs and period costs.

7. 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

8. Cost Accounting Recording System 7/B
Costs By Nature
790. Material Costs
798. Costs By Nature Applied
799. Product Costs
151. Work-in Progress
791. Labor Costs
152. Finished Goods
792. Wages and Salaries
793. Utility Costs
794. Other Cost and Expenses
795. Tax and Duties Costs
796. Amortization and Depreciation Costs

9. Cost Accounting Recording System 7/B
Costs
Product Costs
790. Material Costs
791. Labor Costs
792. Wages and Salaries
793. Utility Costs
794. Other Cost and Expenses
795. Tax and Duties Costs
796. Amortization and Depreciation Costs
Period Costs
797. Finance Costs
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

10. BÖLÜM 1: Örnek Storyboard
METİN
GÖRSEL

11. PRODUCT (MANUFACTURING) COSTS
Cost Flow
Reporting Cost Items in Financial Statements
Balance Sheet
Income Statement
Assets
Liabilities
PRODUCT (MANUFACTURING) COSTS
Inventories
Sales
Cost of Goods Sold
Tangible Assets
Gross Sales
INVESTMENT
COSTS
Intangible Assets
Operating Costs
Operating Profit/Loss
Other Income and Profit
Other Expense and Loss
PERIOD COSTS
Finance Costs

12. STATEMENT OF COST OF GOODS SOLDTL
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

13. Cost Accounting Recording System Example- Cost Accounting Recording System
A manufacturing company completed the following transactions during May.
The company purchased raw materials for TL 200 and operating supplies for TL 100 on credit.
50 TL of raw material and 20 TL of operating supplies were issued to main production center. Also, operating supply consumption was 10 TL for maintenance and repair cost center.
Accrued direct labor cost was 30 TL and indirect labor cost was 10 TL for main production center for the month of May.
Depreciation cost of May was 6 TL for factory building, 4 TL for assembly machines, 2 TL for office building and 3 TL for store.

14. Cost Accounting Recording System Example- Cost Accounting Recording System
Beginning inventory of work-in progress was 30 TL and account balance is 40 TL at the end of May.
2.000 units of product were completed in May and moved to warehouse.
1.000 units of goods in warehouse were sold at a price which is cost plus 30% profit margin on account.
Requested:
Do the journal and ledger entries according to 7/A.
Ascertain total and unit cost.
Prepare the statement of cost of goods sold.
Prepare Statement of Cost of Sales, and calculate gross profit of sales.