ACC 205 - Cost Accounting

Institution:

Kapiolani Community College

Subject:

Description:

3 hours lecture per week Prerequisite(s): ACC 2or ACC 202. ACC 205 is an introduction to the principles and procedures of cost accounting, including a study of job order and process cost systems, manufacturing cost controls and variance analysis. Upon successful completion of ACC 205, the student should be able to: Demonstrate understanding of manufacturing operations and describe procurement, costing and control procedures for the three elements of production costs (materials, labor and overhead). Record the flow of costs through the cost records and accounts; and compute costs under job order, process and standard costing. Describe the importance and use of cost accounting data in planning, control and management decision making. Classify and record production costs, prepare general journal entries and manufacturing statements. Describe the steps in materials purchasing and issuing procedures, together with their supporting documents and records necessary for accounting and control. Describe the physical inventorying procedures and the accounting methods; prepare general journal entries, maintain stock cards at LIFO, FIFO, and average cost and apply the lower-of-cost-or-market rule. Discuss procedures and records for accumulating and accounting for labor costs. Demonstrate introductory level skills for classifying, recording, summarizing, and allocating manufacturing overhead costs. Discuss and apply accounting techniques for recording losses from scrap, spoilage, and defective goods. Maintain job cost ledger sheets; compute cost of finished products; determine the value of work-in-process and finished goods inventory. Compute unit cost of production and value of inventories under the process costing method and to prepare production cost reports. Discuss the techniques for assignment of common production costs to joint products. Determine fixed, variable, and other cost classification; compute basic variances under standard costing and discuss their importance in planning and control activities. Describe budgeting procedures and be able to prepare sales, production, manufacturing costs, and operating budgets.

Credits:

3.00

Credit Hours:

Prerequisites:

Corequisites:

Exclusions:

Level:

Instructional Type:

Lecture

Notes:

Additional Information:

Historical Version(s):

Institution Website:

kapiolani.hawaii.edu/page/home

Phone Number:

(808) 734-9000

Regional Accreditation:

Western Association of Schools and Colleges

Calendar System:

Semester

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