MA14 - Process Costing Sample Problem - Managerial Accounting

[@DanielAlmeida-lb7rw]

This was absolutely amazing. I took a couple of cost accounting courses and was good at calculating EU and cost per EU, but my brain couldn't process why we used cost per EU as most courses never really blend the whole WIP -> finished goods spiel well. In 16:40 you pretty much gave me an epiphany lol. I am so used to job order costing where it's just so simple to flow from raw mat/wages payable/O/H to WIP to finished goods to COGS. Thank you so much!

[@laurabethskaggs]

Thank you for making these, I went from a 65 on my last test to a 100!

[@Tony-Bell]

Well done!

[@nakia4230]

Wow this is great. I have to keep practicing own my own and I definitely will understand the whole chapter. Definitely going to watch your videos on other chapters I need to study on

[@Sammy.ShanSamuels]

Gained a subscriber today... pretty good material 👌 watching from 🇯🇲

[@ThomasG84]

How does the Process Costing Schedule relate to the COGS Manufactured? By this, I mean that in your MA8 video (Schedule of COGS Manufactured), we have a COGS schedule that includes Opening Inventory PLUS COGM Less Closing Inventory-COGS. Is the relative inventory value of the opening and closing inventory derived from the Production report? The way I see it is at the end of a reporting period, one would like the Production Cost schedule to derive a per-unit value for opening stock into the next period?

[@Tony-Bell]

Great question - here's what I think but I'm not 100% sure - the Schedule of COGM is company wide - you prepare one schedule for the company. The Production report would be used for each individual department / by product. So the COGM Schedule is very high level, where production reports are very granular.

[@yolandamkize9076]

Great explanation 🥺

[@gracielagarcia8526]

You make me not want to drop my managerial accounting class

[@vascogamero530]

Hi Tony, can you please explain the logic behind why Total Units to Account for and Total Units Accounted for equal each other? I know it’s a reconciliation, but I’m just trying to understand what’s really going on in the first half of the production report (dealing with units as opposed to costs). Why do they equal each other?

[@Tony-Bell]

Here's the logic (it's easier to think through with small numbers so this example has small numbers): Let's say I manufacture giant boats. At the start of the year, I have 2 giant boats that I am already working on (half finished from last year). And during the year I start working on 8 more boats. At the end of the year, I look at my records, and find that I've finished and delivered 7 boats. How many boats MUST be in the shop? Hopefully the answer is obviously 3! If there were 2 boats at the start of the year and I started 8 into production. There would be 10 boats to account for. Since I know I "completed and transderred out" 7 boats. There must be 3 left in progress at the end of the year. Total accounted for must be 10. I hope this helps!

[@vascogamero530]

@@Tony-Bell thanks, yes!

[@gigipendolino7111]

are you able to make your FIFO equiv units method public please?

[@lalalalaland84]

How often do you do this report? Monthly?

[@pubgmobileclashroyale4725]

Good job👍

[@masudalahmed]

I love this format. Can you add the FIFO method video, please

[@Tony-Bell]

I have done this in the Members Only videos - kzbin.info/www/bejne/hpq8aIqufMicadE No pressure to join, but they're in there!

[@shernzmekadifference7636]

👍👍

[@flyingchimp12]

I love learning with Kermit the frog - unironically

[@Tony-Bell]

😆

[@ricardorodriguez5999]

te amo