Archive about 'Process Costing'
Tweet Append below a snapshot of some frequently used terms in process costing. Before we go further, we should first understand the term process costing which is “the costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes. Costs are averaged over the units produced the period” […]
Tweet Click to the respective topic on Process Costing Content Page On PROCESS COSTING 1.0 Definition and features of Process costing 2.0 Frequently Used Terms In Process Costing 3.0 Simple Illustration on Process Costing Methodology 4.0 Process Costing With Work-In-Progress- Equivalent Unit 5.0 Process Costing-Normal Loss and Its Treatment
Tweet Accounting For Losses In process costing, we can often found the output from a process is less than the input. Where the output from a process is less than the input, there is therefore a loss. Basically there are two types of losses in Process Costing: Normal loss Abnormal Loss Normal Loss […]
Tweet Earlier article(Part2) deal with a simple process costing without any work-in-progress In this article, we shall deal with process costing with work-in-progress. Process Costing With Work-In-Progress Work-in-progress is really uncompleted units hence this should not receive the full costs of the material, labor and overhead to complete it. Therefore it’s misleading if for the […]
Tweet Append below a illustration of a simple set of process costing where there are merely two processes, without any work-in-process and finished stock account. Illustration Of a Simple Process Costing Process 1 Process 2 Material 15,000 – Labor 20,000 $25,000 Manufacturing expenses 5,000 $5,000 40,000 $30,000 Production for the period is 1,000 unit. Show […]
Tweet Process Costing CIMA’s definition: The costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes. Costs are average over the units produced during the period, being initially charged to the operation or process.Hence, process costing: Determines the cost per unit of product in an environment where […]