The important methods followed in pricing of issue of materials are:- 1. Actual Cost Method 2. First-In First-Out (FIFO) Method 3. Last-In First-Out (LIFO) Method 4. Highest-in First-Out (HIFO) Method 5. Simple Average Cost Method 6. Weighted Average Cost Method 7. Periodic Average Cost Method 8. Standard Cost Method 9. Replacement Cost Method 10. Next in First Out (NIFO) Method [...]
In this article we will discuss about Material Pricing:- 1. Objectives of Material Pricing 2. Problems of Material Pricing 3. Features 4. Determination. Objectives of Material Pricing: There are two main objectives of material pricing: (a) To charge the cost of materials issued to production on a realistic and consistent basis. (b) To provide a satisfactory basis of valuation of [...]
The treatments are: 1. Pricing of Materials Returned to Supplier 2. Pricing of Materials Returned from Production Department 3. Transfer of Materials from One Job to Another 4. Treatment of Material and Production Losses 5. Scrap 6. Spoilage 7. Defective Work/Rejects. Treatment of Items in Material Pricing: Pricing of Materials Returned to Supplier Pricing of Materials Returned from Production Department [...]