Course Information
Registration period
Year-round Recruitment
Course Level
Study Mode
Duration
7 Hour(s) 59 Minute(s)
Language
English
Taught by
Robert (Bob) Steele
Rating
Course Overview
Advanced Cost Accounting for Effective Managerial Decision-Making and Efficient Cost Management
Welcome to this course, where we delve into the intricacies of cost accounting in manufacturing companies utilizing process costing systems. This comprehensive course introduces you to managerial accounting topics specific to process cost systems and equips you with the essential knowledge and skills required for accurate cost classification, tracking, and allocation.
Starting with an overview of managerial accounting and cost accounting concepts, we explore the classification of costs and the significance of categorizing costs in various ways. Understanding the flow of costs through the accounting process in a manufacturing company is crucial, and we provide a comprehensive outline of this process.
We compare and contrast the two primary inventory costing systems used in manufacturing companies: job cost system and process cost system. You will gain insights into the circumstances in which each system is used, helping you identify the most suitable approach for different manufacturing scenarios.
In our exploration of the process cost system, we meticulously trace the flow of inventory costs. We track costs related to raw materials, their progression through work-in-process and factory overhead, their transformation into finished goods, and their ultimate expensing as cost of goods sold.
The course covers the concept of overhead and its importance, including the distinction between actual overhead incurred and estimated overhead applied to departments. You will learn how to calculate predetermined overhead rates and utilize them to estimate overhead allocated to different departments accurately.
Recording journal entries related to costs within the process cost system is a critical aspect, and we guide you through each step. You will gain hands-on experience in entering journal entries for the transfer of raw materials, direct and indirect wages, overhead costs, allocation of overhead to work-in-process, department transfers, finished goods, sales transactions, and cost of goods sold.
We delve into the calculation of the cost per equivalent unit and the assignment of costs to ending work-in-process and transferred-out amounts. We explore both the First In First Out (FIFO) and Weighted Average methods, ensuring you have a comprehensive understanding of cost allocation techniques.
Throughout the course, we provide clarity on key terms and definitions related to job cost systems, enhancing your practical knowledge and application of cost accounting concepts.
In addition to the instructional videos, the course includes a range of valuable resources, including downloadable PDF files for offline reference, preformatted Excel practice files to facilitate hands-on learning and reinforce Excel skills, multiple-choice practice questions to improve test-taking abilities, short calculation practice questions for concise problem-solving, and discussion questions for engaging in meaningful conversations with fellow students.
Your instructor, a seasoned professional with expertise in accounting concepts and software, is a Certified Public Accountant (CPA), Chartered Global Management Accountant (CGMA), and a curriculum development expert. With a wealth of practical experience and teaching proficiency, the instructor is committed to helping you achieve your learning objectives.
If you're an accounting student, aspiring accountant, business owner, or professional seeking to enhance your cost accounting skills, this course provides the comprehensive knowledge and practical tools needed to master process costing systems and make informed managerial decisions. Enroll now and embark on a transformative learning journey in cost accounting!
Course Content
- 10 section(s)
- 98 lecture(s)
- Section 1 Introduction
- Section 2 Cost Classifications
- Section 3 Manufacturer’s Financial Statements
- Section 4 Cost Flows for a Manufacturing Company
- Section 5 Job Cost vs Process Cost System
- Section 6 Process Cost System Overview Using FIFO Method
- Section 7 Flow of Materials, Labor, & Overhead Cost Through Inventory Accounts
- Section 8 Cost Per Equivalent Units – and Assigning Costs Weighted Average Method
- Section 9 Overhead Costs & Allocation
- Section 10 Comprehensive Problem – Recording Process Cost Journal Entries
What You’ll Learn
- Comprehend the key concepts and principles of process costing systems in cost accounting, distinguishing them from other costing methods.
- Classify costs effectively, understanding different cost classifications and their importance in process costing.
- Outline the step-by-step flow of costs in a process costing system, from raw materials to finished goods and cost of goods sold.
- Differentiate between job cost systems and process cost systems, and determine the appropriate system for specific manufacturing scenarios.
- Apply overhead accounting principles, including calculating predetermined overhead rates and allocating overhead costs to departments.
- Record accurate journal entries related to costs in a process costing system, including transfers, direct and indirect wages, overhead costs, and sales transact
- Calculate the cost per equivalent unit and allocate costs to ending work-in-process and transferred-out amounts using both FIFO and Weighted Average methods.
- Explain key terms and definitions related to job cost systems, enhancing practical understanding and application.
- Analyze process cost statements, interpreting the data to gain insights into cost control, performance evaluation, and managerial decision-making.
Skills covered in this course
Reviews
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RRebecca Morrow
I thought the content was great. I used it as a refresher since I haven't done cost accounting recently and wanted to brush up. I was disappointed that I couldn't "finish the course" because I can't complete the discussion questions 1-6. I was using a tablet to do the course, but it said to do these questions, I would need to use my laptop. I got on my laptop and still wasn't given the option to complete these questions. Also, the content is a bit repetitive and some of the definitions (such as Overhead) got very repetitive. As a suggestion, you could define overhead and then explain the different terms such as manufacturing overhead, etc. all mean overhead. Also, I feel like your picture illustrations were great as visuals. But I feel that, for every topic you're talking about, you should also show a real world financial statement or subsidiary ledger, or workpaper, or requisition form to also cement in the student's mind what the end result is in the real world.
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HHala Ibrahim
very good information
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AAmita Hiers
Instructor was long winded, leading to tuning out while watching. There wasn't nearly enough engagement. Some course material was irrelevant (excel tips, test-taking tips, etc). Way too easy to skip through presentations, this course doesn't have any accountability built in, making it seem unworthy of certification. Graphics were gimmicky.
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DDebra Peterson
(1) Sounds like an AI voice. Well if that is the case, use GRAMMARLY to correct grammor errors and edit the transcript. I am having a hard time understanding you are saying. This would be a "C or D" if submitted as a college paper. Please do and UPDATE. (2) Why provide resources that are expensive to print?? Look at all of the colors and the ink used!!! Please provide limited coloring and black and white. I could print the resources and color them in. Even a geo designed back ground with limited ink would be better. If I print the resources I CANNOT TAKE NOTES ON THEM TO GO WITH YOUR LECTURE AS THE PAGE IS BLACK!!! Otherwise you have a near 5 star experience for the student. Since there is NO UPDATE I can't determine the quality. This is something I want to finish. Please take more pride in your work.
