Following are the main forms of process accounts: 1. Simple Process Account 2. Loss in Weight and Sale of Scrap 3. Sale of some Part of Process Production 4. Normal and Abnormal Wastage 5. Abnormal Wastage and Abnormal Effectiveness 6. Oil Refinery Process 7. Bye-Products and their Accounts 8. Joint Product 9. Joint Expenses, Separate Expenses and Bye-Product 10. Statement [...]
In this article we will discuss about:- 1. Definition of Process Costing 2. Features of Process Costing 3. Process Losses and Gains. Definition of Process Costing: CIMA defines Process Costing as "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 during the period." [...]
The following points highlight the two methods of valuation of opening work-in-progress. The methods are: 1. FIFO Method of Valuation 2. Average Cost Method of Valuation. Valuation of Opening Work-in-Progress: Method # 1. FIFO Method of Valuation: Under this method of valuation it is assumed that units are dealt with on a first-in-first-out basis which signifies that the first work [...]