1. Cost Accounting-I
Examples

2. Cost Accounting Examples
Exercise 1: The reported inventory costs and the financial events of ABC Co. met in December 2014 are as follows:
DATE
Event
Cost of Beginning Raw Material is 3000 TL
Cost of Beginning Work-in Progress is 5.000TL
Cost of Beginning Finished Goods is 8.000TL
Purchased raw material priced at TL, and paid TL transportation for acquired raw material.
Issued raw material cost is TL.
Paid TL direct labor and TL indirect labor in cash.
Paid TL factory electricity in cash.
Paid 800 TL lubricant cost in cash.
The depreciation cost is TL.
The cost of Ending Work-in Progress is TL
The cost of Ending Finished Goods is TL
The sales of current period is TL.

3. Cost Accounting Examples
Exercise 1:
Required:
Ascertain the cost of finished goods and cost of goods sold.
Prepare the statement of cost of goods sold.
Present the financial information about cost/expense in financial statements.

4. Cost Accounting Examples
Exercise 2: Find the prime cost, cost of production, cost of sales (total cost) and profit from the following:
Direct Materials TL
Direct Labor TL
Factory Overheads TL
Administration Expenses TL
Marketing Expenses TL
Distribution Expenses TL and
The manufactured goods are totally finished and sold at the current period.
Sales TL.

5. Cost Accounting Examples
Exercise 2-Solution: Prime Cost= Direct Materials+ Direct Labor = = TL Cost of Production = Prime Cost+ Factory Overhead Exp. = = TL Total Cost of Business Activities= Cost of Production + General& Administrative Exp.+ Marketing, Selling& Distr. Exp. = = TL Gross Profit= Sales- Cost of Goods Sold = = TL Operating Profit/Loss= Sales – (Cost of Goods Sold + Gen. Ad. Exp.+ Marketing, Selling& Distr. Exp. = – ( ) = TL

6. Cost Accounting
Exercise 3:Calculate Prime Cost, Factory Cost, Cost of Production, Cost of Sales (Total Cost) and profit from the following particulars:
COST COMPONENTS TL
Oil Consumption
250
Direct Wages
86.650
Salaries of Salesmen
15.100
Management Salaries
10.000
Net Purchase of Raw Materials
Depreciation of Delivery Trucks
1.600
Insurance Expense of Finished Goods
2.500
Beginning Inventory of Raw Materials
3.260
Factory Rent
8.300
Lightening of Showroom
1.500
Depreciation of Factory Building
3.800
Ending Inventory of Raw Materials
1.100
Office Salaries and Expenses
7.000
Commission to Salesmen
2.850
Transportation to Customer
2.800
Wages of Maintenance Workers
12.600
Electricity of Office Building
Sales

7. Exercise 3- Solution: Direct Material Cost 122.700
Cost of Beginning Raw Materials
3.260
Net Purchases
Cost of Ending Raw Materials
(1.100)
Direct Labor Cost
86.650
PRIME COST
Factory Overhead Cost
24.950
Wages of Maintenance Workers
12.600
Factory Rent
8.300
Depreciation of Factory Building
3.800
Grease Oil Consumption
250
COST OF PRODUCTION
General and Administrative Expenses
20.800
Management Salaries
10.000
Electricity of Office Building
Office Salaries and Expenses
7.000
Marketing, Selling And Distribution Expenses
26.350
Salaries of Salesmen
15.100
Transportation to Customer
2.800
Depreciation of Delivery Trucks
1.600
Insurance Expense of Finished Goods
2.500
Commission to Salesmen
2.850
Lightening of Showroom
1.500
TOTAL COST

8. Cost Accounting Examples
Exercise 3: Find the cost of raw material, work-in progress, finished goods, cost of production and cost of sales (total cost) and profit from the following:
The cost of beginning raw material is 105 TL. Company purchased kg. of raw material priced at 165 TL and the acquisition cost of it is 25 TL.
The cost of ending raw material is 95TL.
Direct labor cost is 110 TL, indirect labor cost is 35 TL.
The cost of indirect material is 30 TL.
The depreciation cost of factory building and machinery is 30 TL.
The rent of store is 100 TL and the packing material used in store is 20 TL.
The office salaries are 90 TL and the office supply consumed in administrative department is 25 TL.
The cost of beginning work-in progress is 120 TL, ending is 95 TL.
The cost of beginning finished goods is 150 TL, ending 80 TL.
The amount of total sales is TL.

9. Cost Accounting Recording System-Example
The economic events that ABC Furniture met in May are as follow:
The material priced TL has been purchased on account.
The raw material cost TL and other material cost TL has been issued and has been issued.
Direct labor cost TL, indirect labor cost TL has been accrued.
The factory amortization cost is TL, machinery amortization cost is TL, sales outlet amortization cost is TL.
The wages and salaries for selling department cost TL has been accrued.
The office supplies used in selling department cost TL.

10. Cost Accounting Recording System-Example
Beginning Work-in Progress cost is TL, Ending Work-in Progress cost is TL.
Beginning Finished Goods cost is TL (1.000 kg x 10 TL).
2.000 kg. goods has been started to manufactured and finished in May.
1.000 kg finished goods with %30 profit margin on cost has been sold on account.
Requested:
Ascertain total and unit cost.
Prepare the statement of cost of goods sold.
Present the cost/expense in financial statements (Balance Sheet/Income Statement)