Manufacturing costs and accounts . ws this mechanism developed from Fig. 13, but carried in thisinstance to the point of making separate charges to FinishedWork for three separate products, called X, Y, and Z. The Time Record summarizes the work of the various machines, 52 MANUFACTURING COSTS AND ACCOUNTS and groups the process-hours worked on X, Y, and Z, showingtotals of 1,000, 400 and 600 hr. respectively, out of a depart-mental total of 2,000 process-hours. Each of these totals forX, Y- and Z is entered on the Cost Sheets, of which there is one EAST DEFT (260 260 ]Depreciation ](540 640 ]
Manufacturing costs and accounts . ws this mechanism developed from Fig. 13, but carried in thisinstance to the point of making separate charges to FinishedWork for three separate products, called X, Y, and Z. The Time Record summarizes the work of the various machines, 52 MANUFACTURING COSTS AND ACCOUNTS and groups the process-hours worked on X, Y, and Z, showingtotals of 1,000, 400 and 600 hr. respectively, out of a depart-mental total of 2,000 process-hours. Each of these totals forX, Y- and Z is entered on the Cost Sheets, of which there is one EAST DEFT (260 260 ]Depreciation ](540 640 ] Share oC AdminExpense Time Record Cost of Process Hour Total an. X v Z Ers or Prod * 1000 1000 V 400 400 z COO 600 TotalB 2000 1000 400 aoo Direct LaborExpense:— 540 26012070CO tioso 2000 5X CtB. Total 1050 Cost Sheet Cost Sheet Prod. VDirect 75210 |l218Lb«.=6« Total Coat 285 Prod, z Direct 75315 |l219Lba.»9>iOtB.| Total Cost 300. Balance ofWork in Procea Work Accounts Fig. 14.—Costing on Method A (two or more products). Total depart-mental cost divided between products in ratio of Time occupied by gives three different rates per lb. Simple division of total costs by respec-tive weights of products would give false costs in this case. for each product. The departmental total of 2,000 hr. is enteredon the Cost of Process-hour Sheet. On this latter sheet are then entered all the components ofcost which are chargeable to the department except direct ma-terial. (Direct material is often entered direct on separate Cost COSTING ON METHOD A 63 Sheets.) The total of departmental cost thus found, $1,050,is then divided by the total process-hours, as shown by Time Re-cord, and the result is the cost of a process-hour, viz., 5J^ figure is then entered on the cost sheets, so that the valueof time on each product can be extended
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