Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Process Costing
It is a costing method, which is applied wherever there are standard operations along with continuous production of homogeneous as identical units. Consequently the output is the final product of a sequence of operations. In such type of costing, costs are accumulated on the basis of process, and the cost per unit is arrived at via dividing the total process costs via the number of input of the next process and further materials can be added at every stage production. Thus cost per unit for the second and subsequent processes is a cumulative cost as an example of, the cost per unit for the output transferred from process 2 is the cost of production for both process 1 and 2 and not for process 2 above. The fact such the output for the first process becomes the input for the next process means such the process costing procedure strives to maintain the cost of each process product and charge that along with the first process. The intention is to transfer the cost accumulated in the first process to the next process.
This is demonstrating below as:
Process 1
Shs
Direct Material:
1,000
Transferred to
Direct Labour
500
Process 2:
3,000
Overheads
1,500
Person 2
Transfer from
Transfer to
Process 1:
Finished Goods:
6,000
Direct material
Direct labour
____
initial stock.=21,926,150 purchases.=361,550,000 other expenses=207,000,000 operatig profit=34,500,000 sqles=600,000,000 disc received=23,976,150 final stock=1000,000 variable exp
Calculate the range of monthly financing rates for which the schedule of monthly cash flows is profitable: Month Cash Flow, $ -------------------- 0 -10,100 1 +23,000 2 -13,
What is an advantage of using absorption costing? A. It permits a business to calculate the break-even point for production. B. It permits a business to calculate the total c
Constant Gross Margin Rate This method assumes that every product contributes an equal percentage of gross profit for every shilling of sales. It works back from gross margin
You are assisting the accountant on the preparation of the final accounts of a business with a year-end of 31 December. A trial balance has been drawn up and a suspense account ope
You perform a travel cost study that looks at the relationship between the cost of visiting a lake (including costs of travel, value of time spent not working & any entry fees), it
Are non-profit and governments required to depreciate assets? Why or why not? Would it make sense for them to use double declining balance? Is there a difference between a non-p
In January, 2008, Sanford Corporation purchased a patent for a new product for $1,200,000. The patent was valid for fifteen years but it was estimated to have a useful life of ten
McDaniel Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor: Direct Materials (100 lbs. @ $1.00
The Cutting Department of the Rock Island Custom Cabinetry Corporation (a process costing production) had no work in process at the beginning of the period, 12,000 units were compl
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd