Cost Accounting Cycle, so bago tayo magproceed sa problem solving under Cost Accounting Cycle, pagkumparahin muna natin yung operating cycle ng merchandising at manufacturing.

Sa operating cycle ng Merchandising... Basically kapag merchandising-buy and sell. Bibili ng inventory, then ibebenta sa customers.

So start at cash then yung cash gagamitin pambili ng merchandise inventory so to record yung acquisition ng merchandise inventory, debit merchandise inventory, credit cash.

Then itong merchandise inventory na ito is yung inventory na ibebenta sa customers (symbolized by A/R)

So to record yung sale ng inventory to customers, debit A/R, credit Sales. And debit COGS and credit merchandise inventory.

Siyempre yung A/R from sale of inventory is makokolekta.

Magiging cash din siya so to record the collection,debit cash, credit A/R.

Paano naman kapag manufacturing?

Kapag merchandising, yung inventory na binebenta mo sa customers mo is binibili mo lang siya. Kumbaga buy inventory and sell inventory.

Kapag manufacturing, yung inventory na binebenta mo sa customers mo is ikaw mismo yung gumagawa- ikaw mismo yung bumubuo ng inventory. Ikaw mismo yung gumagawa ng product na imamanifacture mo sa customers mo.

So yung operating cycle ng manufacturing- so start ulit tayo sa Cash. Then yung cash na yon is- siyempre para makabuo/manufacture ka ng product is kakailanganin mo ng inventory-yung tinatawag na raw materials inventory.

So to record the acquisition of raw materials, debit Raw Materials Inventory,credit Cash.

Siyempre yung raw materials mo, yan ay gagamitin mo para makabuo ka ng product so yung raw materials inventory mo malilipat na siya sa tinatawag na Work in process Inventory/Goods in Process.

So ano ba yung mga kailangan mo para makabuo ka ng product? Siyempre kailangan mo ng raw materials.

So to record yung transfer ng raw materials para makabuo ka ng product which is dadaan muna siya sa work in process is debit Work in Process, credit Raw Materials Inventory.

Kasi nga yung raw materials mo, ginamit mo na siya para makabuo ng product.

So ano pa yung kailangan para makabuo ka ng product/finished goods?

So kakailanganin mo rin ng manpower para gumawa mismo ng product mo.

Siyempre yung manpower na yun, meron siyang cost which is yung compensation/sweldo.

Yan yung tinatawag na Direct Labor Cost.

So to record yung Direct Labor Cost, debit Work In Process, credit Cash.

Siyempre, kailangan mo rin yung tinatawag nating Factory Overhead (FOH) wherein ito yung mga cost na related sa pagmamanufacture ng product mo which is hindi siya under ng raw materials at hindi direct labor.

So to record yung Factory Overhead, debit Factory Overhead Control, credit Cash or any appropriate account.

So napansin mo, mas marami yung entries for manufacturing.

Siyempre yung Work in Process mo magiging finish goods yan-matatapos yan sa lahat ng proseso na kailangan para makabuo ko ng product.

So yung work in process mo, magiging finish goods. Kung 100% tapos na yung product, mapupunta siya sa Finished Goods Inventory.

So to record yung pagtransfer ng inventory from Work in Process to Finished Goods, debit Finished Goods Inventory, credit Work in Process- mababawasan yung Work In Process.

Itong "Finished Goods Inventory" yung ibebenta na sa mga customers mo. So itong Finished Goods Inventory magiging A/R.

Kasi ito (FGI) yung ibebenta sa customers mo so

To record the sale, debit AR, credit Sales, debit COGS, credit Finished Goods Inventory.

Siyempre yung AR din macocollect sa future time so debit Cash, credit AR.

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