Product costing methods may be grouped under the following three main categories: 1. Specific Order Costing 2. Continuous Operation/Process Costing 3. Service/Function Costing. Method # 1. Specific Order Costing: Specific order costing method is the basic costing method applicable where work consists of separate contracts, jobs, or batches, each of which is authorized by a special order or contract. Thus, specific [...]
Joint products are of equal importance in terms of sale value and profits. Therefore, they are treated as main products. They cannot be separated until the process has reached a certain stage of completion. Apportionment of costs incurred up to the split-off point (joint costs) is arbitrary and has the limited purpose of determining the cost of stock of each [...]
The following article will guide you about how to calculate opening and closing work-in-progress. Accounting with Opening and Closing Work-in-Progress-FIFO Method: FIFO method assumes that those units, which represent work-in-progress at the beginning, are completed first and the units partly complete at the end of the period are units introduced or transferred from the preceding process during the current period. [...]