Cost Accounting I

Upon successful completion of the course, students will be able to:

• Understand the differences between management accounting and financial accounting.
• Classify costs as product costs, period costs, fixed costs, variable costs, direct costs, and indirect costs.
• Understand the flow of costs in a job-order costing system and use T-accounts.
• Calculate production costs, cost of goods manufactured, cost of goods sold, and prepare the income statement.
• Value the inventories of an economic entity using the weighted average cost method, LIFO, and FIFO, and prepare the income statement.
• Calculate a predetermined manufacturing overhead rate and, by comparing it with actual manufacturing overhead costs, determine and account for underapplied or overapplied overhead.
• Record the flow of production costs in a process costing system and calculate the cost of equivalent units using the weighted-average method.
• Allocate manufacturing overhead costs and prepare the overhead allocation sheet using either the direct or the step-down allocation method.