ACC 2311 COST ACCOUNTING

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1 ACC 2311 COST ACCOUNTING 1 C SECTION: 2022 TIONO COMPUTER UCRO COM Instructor: Charles Daniels, CPA, CMA, CGMA Phone: (718) (preferred) Semester: Spring 2013 Course Format: Hybrid, 50% Classroom & 50% Online Class Hours: Mondays 6:00 pm to 7:15 pm Class Room: N922A Office Hour: Fridays 4:45pm to 5:45pm Room: N1012 PREREQUISITE: ACC 1201 Principles of Accounting 2 CREDIT HOURS: 3 TEXT: Cost Accounting, A Managerial Emphasis, 14 th Edition, by Horngren, Datar & Rajan ISBN , Pearson/Prentice Hall (Publisher) A new textbook will have MyAccountingLab Access Code You may also purchase an e-book with MyAccountingLab Access COURSE SYLLABUS OVERVIEW OF THE COURSE This course introduces students to cost accounting concepts and procedures. An effective cost accounting system provides information that can impact operational and financial performances of an entity. Students will learn how cost accounting information is developed and used for various purposes in different types of business entities. We will examine the role that cost accounting plays in measuring, analyzing and reporting information that relates to the cost of obtaining and using an entity s resources. Students will learn ways of assigning various costs such as: direct costs, indirect costs, fixed costs, variable costs, inventoriable cost and period costs. COURSE DESCRIPTION Throughout this course Cost Accounting is treated as a reporting and analytical function for management planning, control and decision making. The fundamental principles of cost accounting, in a manufacturing and non-manufacturing environment, will be emphasized. Manufacturing statements are introduced and analyzed. Job costing, process costing and other cost accumulation procedures are thoroughly analyzed. Planned, applied and actual factory overhead are discussed. LEARNING OUTCOME Upon successful completion of this course students will acquire the necessary knowledge and skills required to use cost accounting as a reporting and analytical function for planning, controlling and decision making. COURSE FORMAT This is a Hybrid course that combines face-to-face classroom instruction with online learning. Fifty percent (50%) of the course is scheduled on-campus and the remainder online. This course offers the benefit of regularly scheduled interaction with the instructor, and flexibility of computer-based learning process. Every week we will meet in the classroom on Monday. You are expected to visit the Blackboard and MyAccountingLab at least three different days of the week. I will log on to these Online Class Websites at least 5 days per week. If you have personal questions you can reach me by . I usually respond to s within 24 hours. The Discussion Board should be used for questions related to course contents and issues so that the class can have access to the response(s). 1

2 IN-CLASS COMPONENT DESCRIPTION The class sessions will be conducted using lectures and discussion formats. Lectures will be centered around relevant problems that can be found below in the Course Coverage section under IN-CLASS ASSIGNMENTS. These problems have been selected to illustrate key concepts and tools used for management decision making. You should read the in-class assigned exercises and problems as well as the related chapter PowerPoint presentation on Blackboard and make a genuine effort to complete these assignments prior to each class session. In addition, you are expected to bring the text or copies of the in-class assignments and a calculator to every class session. ONLINE COMPONENT DESCRIPTION There are two dedicated Online Class Websites for the course which students must register for. MyAccountingLab The first Online Class Website is an online homework, tutorial and assessment system that accompanies your textbook. All graded online assignments and examinations shall be completed outside of class time using MyAccountingLab. Students who do not have off-campus access to the internet should plan on spending time in the school computer lab in order to complete these online assignments. To use MyAccountingLab you must first register online. Students will need an address and a student access code. This code is available with a new textbook. Otherwise you may purchase an e-book online with access to MyAccountingLab. Appendix 1 on page 7 has the registration instructions. MyAccountingLab can also be accessed from Blackboard by clicking on the MyAccountingLab link. Blackboard The other online Website that will be used in this course is Blackboard. This Online Class Website has a digital version of this syllabus and will also include announcements, discussions and other course related information. To access Blackboard, students must register with the CUNY Website Portal, if they have not already done so for a prior class. To register with the Portal, open a Website browser on your home computer or one located in a computer lab at school (such as Internet Explorer or Mozilla Firefox) and go to < Once on the Portal Home Page click LOG-IN. A new page called Portal Login will appear. Click Register for a New Account and follow the registration instructions. Be sure to write your Username and Password down for future reference. Once you are logged in, click the link for Blackboard. On the next page, click the link for Spring 2013 Cost Acct 1: ACC Once you do that, you will be taken to the homepage of our ACC 2311 Online Class Website that you should explore and visit regularly. Blackboard has several sections: The main sections we will be using are: Course Information: An online version of this course syllabus and the group project are posted here. Contents: This is where you will find handouts, solutions, PowerPoint slides and lecture notes for the assigned chapters. It is strongly recommended that you study (not just read) the chapter material on the slides before working assignments. Announcements: This section will contain comments on upcoming assignments, deadlines, events, etc. Discussion Board: Questions related to course contents and issues should be posted on the Discussion Board so that the class can have access to the response(s). Throughout the course you should stick to accepted codes of Internet behavior: Do not use all capital letters; people will think you are shouting. Participate in the discussion questions with solid, thoughtful posts (not just ok or I agree ). Use complete sentences, written in English, in your replies. Examples of unacceptable comments are yo or me2. Avoid humor. Make sure that when you enter a comment in the discussion board it is relevant to the class. If you want to send a personal communication to another student, please send an to that student. Do not communicate to the group that which you would not want communicated to you. 2

3 Technology Requirements To participate in the online portion of this class you will need the following: 1. A computer with Internet access 2. An account such as your City Tech 3. The ability to use a browser such as Internet Explorer or Firefox 4. A working knowledge of a spreadsheet and a word processing program 5. The ability to use Blackboard for discussions and to access course information. GRADING POLICY Grading Item Nature of Assignment Weight Assignments Online in MyAccountingLab 30% Exams 30% Exam I Online in MyAccountingLab 10% Exam II Online in MyAccountingLab 10% Exam III Online in MyAccountingLab 10% Final Exam Online in MyAccountingLab 20% Project Group 15% Class Participation 5% TOTAL POINTS 100%. Grading Scale A = B+ = C+ = D = A- = B = C = F = Less than 60 B- = EXAMS: Class exams and the final exam will be administered online in MyAccountingLab and will consist of multiple choice questions, exercises and problems. These exams are timed and you will be allowed one attempt for each exam. There will be no make-up class exams or extension of the due dates. The final exam will be a comprehensive examination. Exam Dates: Exam 1 Feb. 20 th to Feb. 24 th (Covering Chapters 1 and 2) Exam 2 Mar. 18 th to Mar. 24 th (Covering Chapters 4 and 5) Exam 3 Apr. 29 th to May. 5 th (Covering Chapters 17 and 18) Final Exam May 20 th to May. 24 th (Comprehensive) All exams are fixed commitments. PROJECT: The attached project on page 10 will require the application of theory, and a working knowledge of cost accounting. This project is to be completed in groups of four. Each group is required to reconstruct a schedule of cost of goods manufactured and an income statement for Sloane Company. These statements must be completed in Microsoft Excel (or another spreadsheet program). Also, the group will be required to prepare a report in Microsoft Word (or another word processing program) explaining the conceptual errors made by the company s accountant in preparing the financial statements. You are responsible for the selection of your group members. Grading of the project will be based on your analytical skills and presentation of the statements and report. This Project is due April 15, Individual work, handwritten work or late submissions will not be accepted. ONLINE ASSIGNMENTS Online assignments (worth 2 points each) must be completed in MyAccountingLab where they will be automatically graded. These assignments are available as of January 28, 2013 and must be completed in a timely manner. The course coverage section below has the due dates for all online assignments. You will be allowed three attempts for each online assignment. The system will automatically deduct 20 points for each day your online assignment is late. 3

4 PARTICIPATION Your participation grade starts at zero points on the first day of class and increases with your active and frequent contribution to class discussions. Attendance is not considered participation. ATTENDANCE POLICY Attendance is expected at all classes. However, a student may be absent without penalty for 10% of the number of scheduled class meetings during the semester. Absence from class is not considered a valid excuse for failure to submit assignments in a timely manner. It is a departmental policy that excessive absences will affect your final grade. Your online attendance will be determined by logging in to MyAccountingLab and completing the weekly assignments. LATENESS POLICY Punctuality is very important. However, students arriving late should communicate with the instructor at the end of class to ensure that their attendance is recorded. Lateness up to 15 minutes is equal to ½ absence Lateness over 15 minutes is equal to a full absence ACADEMIC INTEGRITY The maintenance of and adherence to the highest standards of intellectual honesty and academic integrity is a serious matter. Students are encouraged to familiarize themselves with the Academic Integrity standards of the School of Professional Studies. Violations of the Standards may result in severe consequences. In this particular course, students should understand and appreciate violations involving Plagiarism and Cheating. Appendix 2 on page 8 has details about plagiarism, cheating and obtaining unfair advantage. If a student is caught cheating or plagiarizing he or she will receive an F grade for that work. OTHER IMPORTANT NOTES 1. Students are expected to complete the required reading before class meetings. 2. Cell phones should he turned off during class sessions, so do not plan on using your cell phone(s) as your clock or calculator. 3. Stop me during class if you do not understand something presented in the lecture. 4. See me after class or during my office hour if you have further questions or concerns regarding the material or any other aspects of the course. 5. Students are expected to bring the text and a calculator to every class. COMPETENCIES The American Institute of CPAs (AICPA) has identified a set of competencies for those entering the profession of accounting ( This course promotes the development of several such competencies: Competency Description How Competency is Developed in this Course 1. Functional Competencies Reporting 2. Personal Competencies Professional Demeanor Problem Solving and Decision Making Interaction Leadership The communication of results or recommendations in a clear, objective and effective manner. Behavior that demonstrates integrity, honesty, high ethical standards, reliability and stability. The exercise of careful reasoning, analysis, and judgment in solving problems and making sound decisions. Productive and collaborative interactions between individuals. The ability to influence, inspire, and motivate others Written communication skills are practiced through class participation and completion of the written assignment. This is achieved through regular and active participation and positive interactions with classmates and faculty. This course provides substantial problem solving and decision making practice through homework assignments and or exams. This is achieved through positive interactions between students and faculty. This is achieved through positive interactions between students and faculty. 4

5 Competency Description How Competency is Developed in this Course Communication The communication of findings, views or recommendations, which provides an adequate context and communicates in a clear, concise and effective manner. Written communication skills are practiced through class participation and completion of the written assignment. Leverage Technology The effective use of various technologies. This is achieved through the extensive use of Blackboard, MyAccountingLab and , as well as Word and Excel whenever appropriate. COURSE COVERAGE WEEK DATE REQUIRED READING IN-CLASS ASSIGNMENTS ONLINE GRADED ASSIGNMENTS /28/2013 In-class: Introduction Chapter 1 The Manager and Management Accounting Online: Chapter 1 The Manager and Management Accounting 02/04/2013 In-class: Chapter 2 An Introduction to Cost Terms & Purposes Online: Chapter 2 An Introduction to Cost Terms & Purposes 02/11/2013 In-class: Chapter 2 An Introduction to Cost Terms & Purposes Online: Chapter 2 An Introduction to Cost Terms & Purposes 02/18/2013 Presidents Day No Class E:1-18, 1-22 P:1-30 E:2-18, 2-23, 2-26 P:2-36, 2-37 Handout 1 on Blackboard Assignment 1 Q:1-1, 1-4, 1-5, 1-8, 1-9, 1-14 E:1-17, 1-20, 1-21; P:1-27, 1-29 Due: 02/03/2013 Assignment 2 Q:2-5, 2-11, 2-12; E:2-19, 2-21, 2-27 Due: 02/10/2013 Assignment 3 Q:2-13, 2-14; E:2-28, P:2-34, 2-38, 2-41 Due: 02/19/ /20/2013 In-class: Chapter 4 Job Costing E:4-17, /25/2013 In-Class: Chapter 4 Job Costing E:4-30, P:4-32 Assignment 4 Q:4-1, 4-6, 4-7; E:4-16, 4-19 Due: 02/24/2013 Online: Chapter 4 Job Costing Assignment 5 E:4-18, 4-21, 4-25 Due: 03/03/ /04/2013 In-class: Chapter 5 Activity Based Handout 2 on Blackboard Costing Online: Chapter 5 Activity Based Costing 03/11/2013 In-class: Chapter 5 Activity Based Costing Online: Chapter 5 Activity Based Costing 03/18/2013 In-class: Chapter 17 Process Costing Weighted Average Method Online: Chapter 17 Process Costing Weighted Average Method E:5-16, 5-21 E:17-19, Assignment 6 Q:5-1, 5-2, 5-3, 5-15 E:5-21, 5-24; Due: 03/10/2013 Assignment 7 E:5-17, P:5-32 Due: 03/17/2013 Assignment 8 Q:17-1, 17-3, E:17-24, Due 03/24/2013 5

6 WEEK DATE REQUIRED READING IN-CLASS ASSIGNMENTS ONLINE GRADED ASSIGNMENTS 03/25/2013 Spring Break No Class /01/2013 Spring Break No Class Online: Chapter 17 Process Costing FIFO Method 04/08/2013 In-class: Chapter 17 Process Costing FIFO Method with 11 Transferred-in Costs Online: Chapter 17 Process Costing FIFO Method, with Transferred-in Costs 12 04/15/2013 In-class: Chapter 18 Spoilage, Rework & Scrap Process Costing Online: Chapter 18 Spoilage, Rework & Scrap Process Costing /22/2013 In-class: Chapter 18 Spoilage, Rework & Scrap Job Costing Online: Chapter 18 Spoilage, Rework & Scrap Job Costing 04/29/2013 In-class: Chapter 15 Allocation of Support-Department Costs Online: Chapter 15 Allocation of Support-Department Costs 05/06/2013 In-class: Chapter 15 Allocation of Support-Department Costs Online: Chapter 15 Allocation of Support-Department Costs E:17-28 E:18-24 E:18-27, E:15-31 P:15-27, P: /13/2013 In-class: Chapter 16 Cost Allocation: P:16-29 (1) Joint Products and Byproducts Online: Chapter 16 Cost Allocation: Joint Products and Byproducts 05/20/2013 In-class: Review for Finals P:15-34, P: /20/2013 to 05/22/2013 Online: Finals Assignment 9 Q:17-8, 17-10; E:17-21, Due 04/07/2013 Assignment 10 Q:17-5, 17-14; E:17-27 Due 04/14/2013 Assignment 11 Q:18-2, 18-3, 18-4, 18-9 E:18-17, Due 04/21/2013 Assignment 12 Q:18-11, 18-12, 18-13, P:18-35, 18-36, Due 04/28/2013 Assignment 13 Q:15-1, 15-2; E:15-21, Due 05/05/2013 Assignment 14 E:15-17, 15-18, Due: 05/12/2013 Assignment 15 Q:16-2, 16-3, 16-5, 16-8, P:16-27 Due: 05/19/2013 Q = Questions; E = Exercises; P = Problems 6

7 MyLab / Mastering Student Registration Instructions Appendix 1 To register for ACC 2311*2022 Cost Accounting 1: 1. Go to pearsonmylabandmastering.com. 2. Under Register, click Student. 3. Enter your instructor s course ID: daniels10325, and click Continue. 4. Sign in with an existing Pearson account or create an account: If you have used a Pearson website (for example, MyITLab, Mastering, MyMathLab, or MyPsychLab), enter your Pearson username and password. Click Sign In. If you do not have a Pearson account, click Create. Write down your new Pearson username and password to help you remember them. 5. Select an option to access your instructor s online course: Use the access code that came with your textbook or that you purchased separately from the bookstore. Buy access using a credit card or PayPal. If available, get 17 days of temporary access. (Look for a link near the bottom of the page.) 6. Click Go To Your Course on the Confirmation page. Under MyLab / Mastering New Design on the left, click ACC 2311*2022 Cost Accounting 1 to start your work. Retaking or continuing a course? If you are retaking this course or enrolling in another course with the same book, be sure to use your existing Pearson username and password. You will not need to pay again. To sign in later: 1. Go to pearsonmylabandmastering.com. 2. Click Sign In. 3. Enter your Pearson account username and password. Click Sign In. 4. Under MyLab / Mastering New Design on the left, click ACC 2311*2022 Cost Accounting 1 to start your work. Additional Information See Students > Get Started on the website for detailed instructions on registering with an access code, credit card, PayPal, or temporary access. 7

8 Appendix 2 Plagiarism is the act of presenting another person s ideas, research or writings as your own. Examples of plagiarism include: Copying another person s actual words or images without the use of quotation marks and footnotes attributing the words to their source. Presenting another person s ideas or theories in your own words without acknowledging the source. Failing to acknowledge collaborators on homework and laboratory assignments. Internet plagiarism, including submitting downloaded term papers or parts of term papers, paraphrasing or copying information from the internet without citing the source, or cutting & pasting from various sources without proper attribution. Cheating is the unauthorized use or attempted use of material, information, notes, study aids, devices or communication during an academic exercise. Examples of cheating include: Copying from another student during an examination or allowing another to copy your work. Unauthorized collaboration on a take home assignment or examination. Using notes during a closed book examination. Taking an examination for another student, or asking or allowing another student to take an examination for you. Changing a graded exam and returning it for more credit. Submitting substantial portions of the same paper to more than one course without consulting with each instructor. Preparing answers or writing notes in a blue book (exam booklet) before an examination. Allowing others to research and write assigned papers or do assigned projects, including using commercial term paper services. Giving assistance to acts of academic misconduct/ dishonesty. Fabricating data (in whole or in part). Falsifying data (in whole or in part). Submitting someone else s work as your own. Unauthorized use during an examination of any electronic devices such as cell phones, computers or other technologies to retrieve or send information. Obtaining Unfair Advantage is any action taken by a student that gives that student an unfair advantage in his/her academic work over another student, or an action taken by a student through which a student attempts to gain an unfair advantage in his or her academic work over another student. Examples of obtaining unfair advantage include: Stealing, reproducing, circulating or otherwise gaining advance access to examination materials. Depriving other students of access to library materials by stealing, destroying, defacing, or concealing them. Retaining, using or circulating examination materials which clearly indicate that they should be returned at the end of the exam. Intentionally obstructing or interfering with another student s work. 8

9 Appendix 3 Spring 2013 Dates Days January 27 Sunday Last day to drop for 100% tuition refund January 28 Monday Classes Begin February 1 Friday Last day drop for 75% tuition refund February 8 Friday Last day drop for 50% tuition refund February 12 Tuesday Lincolns' Birthday observed - College is closed February 14 Thursday Classes to follow Tuesday schedule Last day to drop for 25% tuition refund (Census Date - Form-A cutoff) Last day to drop February 15 Friday without the grade of 'W' Course Withdrawal period begins (A grade of 'W' is assigned to students who officially February 16 Saturday drop a class) February 18 Monday Presidents' Day - College is closed February 20 Wednesday Classes follow Monday schedule March 25- April 2 Monday- Tuesday Spring Recess April 12 Friday Course Withdrawal period ends; Last day to drop with the grade of 'W' May Friday- Friday Final Examinations - Day/Evening May Saturday- Sunday Final Examinations - Weekend May 24 Friday End of Spring Term May 27 Monday Memorial Day - College is closed 9

10 ACC2311 SPRING 2013 GROUP PROJECT DUE APRIL 15, 2013 The Sloane Company is a start-up company organized on July 1, 2012 to produce and market musical greetings cards. The income statement below is for the first six months of operations and was prepared by an inexperienced accountant. Sloane Company Income Statement For the half-year ended December 31, 2012 Revenues: Sales revenue.. $266,000 Accrued rent.... 4,000 Total revenues. $270,000 Operating Expenses: Indirect manufacturing labor costs.. 7,200 Utilities expense ,100 Direct labor costs... 48,000 Factory equipment.. 50,000 Direct materials purchased... 95,000 Insurance expense.. 2,500 Rent of facilities ,000 Selling expense.. 36,000 Administrative expense.. 33,400 Research and development expense... 5,000 Prepaid expenses. 4,000 Total operating expenses.. 312,200 Net operating loss.. ($42,200) a. Seventy percent (70%) of utilities expense and 80% of insurance expense apply to factory operations. The remaining amounts apply equally to selling and administrative expenses. b. Ninety percent (90%) of the facilities rent applies to factory operations; the remainder applies equally to selling and administrative expenses. c. The factory equipment has a useful life of 5 years with $5,000 salvage (residual) value. The company uses the doubledeclining balance method of depreciation. d. Inventory balances at the beginning and ending of the period were: July 1, 2012 December 31, 2012 Direct materials.. $5,600 $7,000 Work-in-process. $8,000 $10,000 Finished goods $25,000 $28,000 The President is disappointed with the results of operations and has asked you to review the income statement and make a recommendation as to whether the company should look for a buyer for its assets. Required: 1. As one step in gathering data for the President, prepare a schedule of cost of goods manufactured for the period ended December 31, As a second step, prepare a new income statement that reflects gross profit. 3. Prepare a report that explains conceptual errors made by the accountant in preparing the above income statement. 4. On the basis of your statements prepared in 1 and 2 above, would you recommend that the company look for a buyer? Explain. 10

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