Weekly Lecture Log File

Subject: Cost Accounting

Class: BBA 4 years/BSAF 4 years/BBA 2 years

Week No Contents Activity

History of Accounting
Introduction to Cost Accounting
Differences between Cost Accounting and Financial Accounting Assignment
Week 01 Cost Accounting for Managerial Decisions, Controller Functions
Cost Accounting System and Cost Department
Meaning and applications of the word cost
Difference between cost and expense
Definition of Cost Accounting
Readings
Nature and Scope of Cost Accounting
Week 02
Uses of Cost Accounting
Types and Classification of Cost
Reporting of costs in cost and financial statements
Cost of goods manufactured statements
Practice
Week 03 Cost of goods sold statements for manufacturing and merchandising
Questions
businesses
Practice exercises and problems
Reverse and formula method for the calculation of cost of goods manufactures
and sold
Income statement single step and multistep Practice
Week 04
Ratios for analyzing cost and profitability Questions
Breakeven Calculation
Practice exercises and problems
Cost Accounting System
Need and requirement of cost accounting system
Week 05 Designing cost accounting system Assignment
Cost accounting cycle for manufacturing businesses
Cost accounting cycle entries in factory and head office journals
Cost accounting cycle entries material purchased, return, issued and used in
production
Cost accounting cycle entries for labor cost/payroll including deductions for
taxes Practice
Week 06
Cost Accounting cycle entries for overhead cost both actual and applied Questions
Entries to record CGM, CGS, sales and closing of over or under applied FOH.
Entries to record non-manufacturing expenses.
Practice exercises and problems
 Posting to entries into ledger/T-Accounts
T-Accounts for all manufacturing cost
Week 07 T-Accounts for non-manufacturing costs Assignment
T-Accounts of WIP, FG and COGS
Practice exercises and problems
Costing methods (Job order costing method & Process costing method)
Job order costing methods
Differences and similarities between job order and process costing methods Practice
Week 08
Job order cost accumulation procedure for material, labor and overhead costs Questions
Design and preparation of job order cost sheet
Exercises and problems
Process costing method
Process costing industries
Week 09 Types of product cost flows in process costing industries Assignment
Process costing cost accumulation procedure
Cost of production report
Cost of report with normal and abnormal loss adjustments
Breakup of cost of production report
Equivalent production schedule and calculation of completed units and per unit Practice
Week 10
cost of completed units. Questions
Adjusting entries for charging abnormal loss to FOH
Practice exercises and problems
Standard Costing
Idle and practical standards
Week 11 Setting standards for material cost Readings
Setting standards for labor cost
Setting standards for overhead cost
Study and design of capacity levels for production
Theoretical, practical actual and normal capacity
Week 12 Quiz
Using standard cost to find and calculate material variances
Using standard cost to find and calculate labor cost variances
Using standard cost to find and calculate FOH variances
Types of FOH variances Reading
Week 13 Total, idle capacity and spending variances of FOH &
Operating performance measures (DCT, MCT, MET) Assignment
Practice exercises and problems
Quantitative models for material planning
Calculation of EOQ
Week 14 Calculation of order point, safety stock, lead time Quiz
Calculation order size, maximum and minimum level and average inventory
Practice exercises and problems