Product and Service Costing
4.4 (17 ratings)
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Product and Service Costing

Learn to Calculate the Cost Flows Related to Product and Service Costing in Manufacturing and Service Environment
4.4 (17 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
228 students enrolled
Last updated 7/2016
English
Current price: $12 Original price: $200 Discount: 94% off
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Includes:
  • 2 hours on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion

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What Will I Learn?
  • You will be able to describe and calculate the cost flows associated with product and service costing, prepare journal entries, prepare departmental production reports using various methods, use multiple and single overhead rates, and handle spoilage.
  • You will be able to explain the difference between job-order and process costing.
  • You will understand the difference between the cost accounting systems of service and manufacturing firms and between unique and standardised products.
  • You will learn the relationship of cost accumulation, cost measurement, and cost assignment.
  • You will have the ability to describe the basic characteristics of process costing, including cost flows, journal entries, and the cost of production report.
View Curriculum
Requirements
  • Basic cost related terminology.
Description

The cost accounting system is set up to serve the company’s needs for cost accumulation, cost measurement, and cost assignment. In general, normal costing is preferred to actual costing in determining unit production costs. In normal costing, actual prime costs are assigned to units, but overhead is applied based on a predetermined rate. Job-order costing is used for both manufacturing and service firms that produce unique or heterogeneous products. Cost is accounted for by the individual job using a subsidiary account called the job-order cost sheet.

The use of process costing is complicated by the presence of work-in-process inventories. When work-in-process inventories are present, equivalent units must be used to measure output. Also, with beginning work-in-process inventories, we must decide what to do with prior-period work and prior-period costs. Two methods are described for dealing with beginning work-in-process inventories: the FIFO method and the weighted average method. The FIFO approach is theoretically appealing because it follows the process-costing principle: a period’s unit cost is computed by dividing the costs of the period by the output of the period. To accomplish this, prior-period work and costs must be excluded. This work and its costs must be tracked separately, creating some complexity in the approach. The weighted average approach is less complicated but poses some problems when control and accuracy issues are important.

By completing this course, you will be able to apply various product and service costing approaches and their methods in real production/service environment, and describe and prepare cost flows, journal entries, and cost of production reports.

Who is the target audience?
  • The course is suitable for a broad audience that includes business owners responsible for improving their business processes, business professionals working on the development or implementation of product and service costing projects with a company-wide/process focus, and students who need practical experience with product and service costing concepts.
Compare to Other Product Costing Courses
Curriculum For This Course
20 Lectures
02:04:47
+
Product and Service Costing in Job-Order Systems
11 Lectures 01:08:30

Characteristics of Production Processes
10:57

Setting Up the Accounting System – Part 1
08:57

Setting Up the Accounting System – Part 2
07:15

Setting Up the Accounting System – Part 3
03:31


Job Order Costing: Direct Materials and Labor Costs
05:35

Job Order Costing: Overhead and Finished Goods
06:45

Job Order Costing: COGS and Nonmanufacturing Costs
05:10

Single vs Multiple Overhead Rates
05:07

Accounting for Spoilage in Job-Order Systems
02:03

Section 1 Quiz
5 questions
+
Product and Service Costing: Process Costing Systems
9 Lectures 56:17
Process Costing Systems: Basic Concepts
09:38

Process Costing with no WIP Inventories
05:25

Process Costing with Ending WIP Inventories
10:35

FIFO Costing Method
08:24

Weighted Average Costing Method
05:28

Treatment of Transferred-In Goods
05:25

Operation Costing
07:07

Accounting for Spoilage in Process Costing
03:47

Section 2 Quiz
5 questions

Course Closure
00:28
About the Instructor
Operational Excellence Training
4.1 Average rating
1,095 Reviews
6,931 Students
19 Courses
Top Experts in Industrial Management

About Us

Operational Excellence Training is a leading provider of high-quality courses and programs related to Industrial Management, Health and Safety at Work, Transportation, Supply Chain Operations, Manufacturing and Warehouse Management.

Our Expertise

Currently, our team includes 5 instructors with expertise in manufacturing, logistics, operations, and services. All the instructors are international-level experts, having 15+ years of practice and Master’s Degree in their relevant field.

Among other professional recognitions, our instructors are members of APICS (Association for Supply Chain and Operations Management), Certified Supply Chain Professionals (CSCP), Certified Lean Six Sigma Black Belts (Acuity Institute) and Certified in Sales and Operations Planning (S&OP Institute).

Our Mission

Our mission is simple: we aim to provide an interactive and engaging learning experience for professionals all around the globe and help them understand and adapt to the requirements of modern management.

The courses we create are structured in a step-by-step manner and contain up-to-date content and comprehensive resources that get our students to the next level.

Get in touch!

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