Summary
Highlights
The session begins by discussing predetermined cost systems, specifically estimated and standard costs, as alternatives to historical costs. Estimated costs are presented as a simple system focused on approximating real costs for raw materials, labor, and overhead, without delving into granular details. The goal is to anticipate costs to avoid detailed statistical analysis.
A new account structure is introduced, featuring 'Materia Prima en Proceso', 'Mano de Obra en Proceso', and 'CIF en Proceso' to manage estimated costs, differing from the 'CIF aplicado' concept. These accounts facilitate comparison between estimated and real costs. New accounts like 'Inventario Final Productos en Proceso' and 'Ajustes' are also introduced for handling variances and inventory.
The process of valuing production based on estimated unit costs (e.g., 300 pesos per unit) is explained. As units are completed, they are valued at this estimated cost. Simultaneously, real costs for raw materials, labor, and overhead are recorded. The key is to compare the estimated costs applied to production with the actual costs incurred, leading to an 'Ajustes' account where these variations are consolidated.
Variations between estimated and real costs are considered 'incontrolables' (uncontrollable) in this simplified estimated cost system. This means the adjustment is distributed across production, inventory, and cost of goods sold. The objective is to bring the final cost closer to the actual cost, highlighting that the system aims for approximation rather than strict control or detailed variance analysis.
A detailed example is provided for a short case study. It involves estimating unit costs (e.g., 1000 pesos) for a production batch of 10,000 equivalent units, then comparing them against actual costs (12 million for the same 10,000 units). The calculation reveals a unfavorable adjustment of 200 pesos per unit, indicating that actual costs exceeded estimated costs.
A more complex example, 'Textil Atala,' is introduced. It details budgeted production, estimated unit costs for different components, and real production figures including finished goods and work-in-process with varying completion percentages. The task is to register all economic events, calculate final inventory values, and prepare an income statement to show estimated versus real gross profit.
The example continues with the provision of real costs for raw materials, labor, and overhead. The audience is prompted to calculate the real unit cost and determine the total adjustment needed per unit. This step is crucial for understanding the financial impact of deviations from estimated costs and for making informed decisions based on adjusted figures.