Introduction to Manufacturing Accounting - Standard Costing

Introduction to Manufacturing Accounting - Standard Costing

This course is an introduction to Accounting in a Manufacturing environment, where you wish to use Standard Costing for accounting for the costs of making the items. This might include for example: a lawn mower where each of a particular model uses the same amount of each type of material, components, nuts, bolts, and washers, wheels, paint, labour, sub-contracted services, packaging, and labour.

Students will learn about: Inputs including setting standards of what and how much we need of each item of material or service we need to make a unit and how much we should pay for each item of material or services.

We will address the different stages of accounting for purchases first placing into Raw Materials, moving to Work in Progress when the materials hit the shop floor, Finished Goods when we put the items on the shelf, and then Cost of Goods Sold when we finally sell it.

During the process we will evaluate how much we actually paid for each unit of input, and how much we actually used versus the budget or Standard, and how to properly account for the variances.

This course will also touch on Warranty using a method for setting up a fund to cover issues such as failures.

We also have a detailed bonus lesson on Overhead Allocation which is how we assign the costs of various divisions such as paint shops and engineering.

During this course we will look at a case study, and then have a demonstration on an Accounting software program. The practices taught are consistent with international practice including Canada, US, and Europe.

***Note: This is an intermediate specialty course therefore general accounting knowledge is required in advance. If you are uncertain or wish to take a refresher, please consider our course Introduction to Accounting.***

Standard Costing in a ´Widget´ Environment where we manufacture a number of identical or similar items

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What you will learn

• An introduction to Accounting in a Manufacturing Environment, and is based on International Accounting practices.
• This course focuses on Standard Costing for what we call 'Widget' type products.
• This course Includes a Case Study.

Rating: 4.05

Level: Intermediate Level

Duration: 1 hour

Instructor: Daniel W. Elliot, CPA, CGA