Pulling it all together: ACME trailers, a costing case

Douglas Ayres and Jason Stanfield

Journal of Accounting Education, 2019, vol. 46, issue C, 72-88

Abstract: Intermediate or advanced managerial accounting courses often include application of costing systems in greater detail than presented in an introductory course. While managerial accounting textbooks provide exercises and problems covering process and job-order costing systems, this teaching case provides an opportunity for you to work with both systems in an integrated, multi-department manufacturing setting where a thorough understanding of the production process must be obtained from transaction information. Further, some inputs produce multiple outputs, necessitating the use of joint cost allocation. In this case you are tasked with calculating costs for the outputs of multiple departments, posting journal entries related to production and other period transactions, and recording the transfer of costs of products from department to department in the manufacturing process, all while thinking critically to locate and calculate the appropriate inputs to the costing and accounting system. In doing so, you will also gain valuable experience in Microsoft Excel and the use of formulas, cell references, and multiple worksheets. You will also gain an enhanced perspective on the role and interaction of various costing systems in sophisticated production environments.

Keywords: Cost accounting; Process costing systems; Job-order costing systems; Joint costs; Manufacturing (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joaced:v:46:y:2019:i:c:p:72-88

DOI: 10.1016/j.jaccedu.2018.12.003

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