Tag Archives | Process Costing

How to Calculate Process Losses? (With Formula, Computation and Accounting Treatment)

How to Calculate Process Losses? (With Formula, Computation and Accounting Treatment). In most of the industries which employ process costing method, process losses of the nature of wastage, scrap, spoilage, etc., occur at different stages of the manufacturing cycle. (a) Wastage: According to terminology of cost accounting I.C.M.A., London, "Waste is discarded substance having no value." Charles T. Horngren says [...]

By |2018-06-18T11:02:00+00:00June 18, 2018|Process Costing|Comments Off on How to Calculate Process Losses? (With Formula, Computation and Accounting Treatment)

How to Calculate Work-in-Progress: Equivalent Production, Method and Problems | Process Costing

In this article we will discuss about the calculation of work in progress using the concept of equivalent production. Production is continuous in most of the process industries. On any given day, there may be stocks of material, and stocks of semi-finished product in each process. Valuation of work-in-progress poses a complicated problem at the time of finalising accounts for [...]

By |2018-06-18T11:02:00+00:00June 18, 2018|Process Costing|Comments Off on How to Calculate Work-in-Progress: Equivalent Production, Method and Problems | Process Costing
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