1. KULIAH 12
SISTEM PENGURUSAN KOS

2. OBJECTIVE
To determine the cost of products manufactured or services provided
To record those costs in the accounting records.

3. TRANSACTIONS Two transactions:
Transfer of material, labor and overhead.
Transfer of completed goods.
in addition to those recorded in the inventory systems

4. TRANSACTIONS Transfer of material, labor and overhead:
Accumulates production costs in an inventory account (WIP).
Labor cost – the pay earned by all workers directly involved in the process.
Overhead cost – those required for manufacturing but not directly associated with the product.

5. TRANSACTIONS Transfer of completed goods:
When the production process is completed.
Methods of costing:
Job costing
Process costing

6. DOCUMENTS Related Document Activity
1. Transfer of material, labor and overhead
Materials requisition form.
Job ticket.
2. Transfer of completed goods.
Completed production order.

7. REPORTS
Control reports
Production cost reports.

8. REPORTS Control report:
Provides evidence that transactions are not lost or improperly changed during processing.
Summarizes all jobs, or batches of products, that are added to or removed from the WIP account.
Summarizes the total additions of material and labor to all active jobs.

9. REPORTS Production cost reports:
Discloses total and unit costs by production center or specific jobs.
Provides detail supporting the balance in WIP account.

10. RECORDS Production cost ledger.
A subsidiary ledger for the WIP account in the general ledger.
Exists in different forms.
Job costing systems – for each active job.
Process costing – for each cost center.

12. CONTROL ACTIVITIES Controls Activity Transaction Authorization
Materials
Production control manager authorizes, inventory control approves.

13. CONTROL ACTIVITIES Controls Activity Transaction Authorization Labor
Production control manager authorizes, production supervisor approves.

14. CONTROL ACTIVITIES Controls Activity Transaction Authorization
Transfer of WIP to finished goods
Production supervisor authorizes and approves.

15. CONTROL ACTIVITIES Controls Activity Security for assets and records
Raw materials
Initial quantity based on bill of materials.
Released only on receipt of materials requisitions.

16. CONTROL ACTIVITIES Controls Activity Finished goods
Transfer based on finished goods report.
Security for assets and records

17. CONTROL ACTIVITIES Controls Activity Segregation of duties Materials.
Factory and production control.
Inventory records and warehouse.
Cost accounting and general accounting.

18. CONTROL ACTIVITIES Controls Activity Segregation of duties Labor.
Timekeeping and payroll.
Factory and timekeeping.
Cost accounting and general accounting.
Payroll and personnel

19. CONTROL ACTIVITIES Controls Activity Segregation of duties
Transfer of WIP to finished goods.
Inventory records and warehouse.
Cost accounting and general accounting.

20. CONTROL ACTIVITIES Controls Activity
Adequate documents and records - materials
Production order request
Based on reorder point and reorder quantity, or based on special customer order.
Production order
Issued only on the basis of a production order request.
Pre-numbered.

21. CONTROL ACTIVITIES Controls Activity
Adequate documents and records - materials
Job cost record
Initiated only on receipt of production order.
Posted daily.
Control total established at month end.

22. CONTROL ACTIVITIES Controls Activity
Adequate documents and records – materials and transfer WIP to finished goods
Inventory record
Numerical sequence of materials requisitions accounted for.
Control total established at month end.

23. CONTROL ACTIVITIES Controls Activity
Adequate documents and records – materials and transfer WIP to finished goods
General ledger
Cost accounting integrated into financial accounting.
Control total from inventory records and cost accounting.

24. CONTROL ACTIVITIES Controls Activity
Adequate documents and records - Labor
Labor time
Allowed time based on operations list.
Job ticket prepared with each assignment.
Data on job ticket and clock card compared.

25. CONTROL ACTIVITIES Controls Activity
Adequate documents and records - Labor
Labor cost
Updated employee list and pay rates provided by personnel department.
Posted with each pay period.
Control total established at month end.

26. CONTROL ACTIVITIES Controls Activity
Adequate documents and records - Labor
General ledger
Control total for direct labor compared to payroll total

27. CONTROL ACTIVITIES Controls Activity
Adequate documents and records – Transfer of WIP to finished goods
Finished goods report
Issued as soon as production process is completed.
Pre-numbered.
Job cost record
Removed from WIP records only on receipt of finished goods report.
Control total established at month end.