Reporting and Accounting for Manufacturing
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Transcript of Reporting and Accounting for Manufacturing
7/27/2019 Reporting and Accounting for Manufacturing
http://slidepdf.com/reader/full/reporting-and-accounting-for-manufacturing 1/13
10/11/2013
Reporting & Accounting
for Manufacturing
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10/11/2013
Characteristics of operation
Warehouse
Sales Division
Administrative Division
Cost of Goods Sold
Income Statement
Sales
Sales Expenses
Administrative Expenses
Purchasing
Plant
Raw Material
Warehouse
Finish Goods
Cost of Production Statemen
Manufacturing
Cost
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10/11/2013
Functional Cost
Classification
Direct Labor
Production
Total
Operation
Commercial
Overhead
Raw Material
+
=
+
+
=
Sales
Indirect
Labor OverheadIndirect
Material
+ +
+
=
= Administrative
Conversion
Primary
Period (non-manufacturing
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Components of Production Cost
Overhead
Raw Material Direct Labor
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Sales
Cost of Goods Sold:
Finish Goods, January 1
Cost of Manufacture (appendix A)
Available for saleFinish Goods, December 31
Gross Profit
Expenses:
Operating
Operating IncomeNon-operating
Earning Before Income Tax
Rp 7.800.000
27.714.000
Rp35.514.0005.300.000
Rp45.200.000
30.214.000
Rp14.986.000
3.186.000
Rp11.800.0001.800.000
Rp10.000.000
Ceramic Manufacture
Income Statement for December 31, 2001
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Work In Process January 1
Raw Material used:
Raw Material January 1
Raw Material Purchased
RM available for processRaw Material December 31
Direct Labor
Factory Overhead :
Production manager salary
Depreciation of plant building
Depreciation of machine
Indirect material
ElectricityPlant insurance
Other expenses
Cost of Production
Work In Process, December 31
Cost of Manufacture
Rp 4.200.000
13.400.000
Rp17.600.0003.800.000
Rp 2.140.000
850.000
1.500.000
840.000
357.000152.000
235.000
Rp 2.450.000
13.800.000
7.490.000
6.074.000
Rp29.814.000
2.100.000
Rp27.714.000
Ceramic Manufacture
Appendix A: Cost of ProductionFor December 31, 2001
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Closing Entries
(a) Work In Process ................................
RM inventory ……………………………..
RM purchased ……………………………
(b) RM Inventory …………………………………...
Work In Process …………………………..
(c) Work In Process ………………………………. Direct Labor ……………………………..
(d) Factory Overhead ………………………………
Salary ………………..............................
Depreciation of plant building …………..
Depreciation of machine ……………….
Indirect material ………………………… Electricity ………………………………..
Plant Insurance ………………………….
Other Expenses ………………………...
17.600.000
3.800.000
7.490.000
6.074.000
4.200.000
13.400.000
3.800.000
7.490.000
2.140.000
850.000
1.500.000
840.000357.000
152.000
235.000
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Notes: This amount that moved from Work In Process to Finish Goods is
Cost of Manufacture of that period.
(e) Work In Process …………………………………
Factory Overhead ………………………..
(f) Finish Good Inventory ………………………….
Work In Process …………………………
6.074.000
27.714.000
6.074.000
27.714.000
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The Flow of Manufacturing Cost
Work In Process
2.450
4.200
13.400
7.490
6.074
3.800
27.714
Finish Goods Inv.
7.800 27.714
30.214
Factory Overhead
2.140850
1.500
840
357
152235
6.074
RM Inventory
4.200 3.800
4.200
RM Purchased
13.400 1.3400
Direct Labor
7.490 7.490
Cost of Goods Sold
30.214
From :transactions,
adjustments,
& allocation
Cost of Manufacturing Bal. Rp2.100
Bal. Rp5.300
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Work In Process Analysis
Work In Process
2.450
4.200
13.400
7.490
6.074
3.800
27.714
Bal. Rp2.100
Beg Bal
Raw Material Used
Ending Bal
Direct Labor
Factory Overhead
Cost of Manufacture
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Revenue $xxxCosts and expenses:
Costs of sales xxx
Selling and administrative xxx
Interest expense xxx
Other income/expense, net xxx
Restructuring charge xxx
Total costs and expenses xxxIncome before income taxes xx
Income taxes xx
Net income $ xx
Single-Step
Income
Statement
Form of the I ncome Statement
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Revenue $xxxCosts of goods sold:
Beginning inventory xxx
Net purchases xxx
Cost of goods available for sale xxx
Less ending inventory xxx xxx
Gross profit on sales xxx
Operating expenses:Selling expenses xxx
General expenses xxx xxx
Other income xxx
Multiple-Step
Income
Statement
Form of the I ncome Statement
Continued
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