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Process Costing Procedure
1. The production factory is divided into a number of methods.
2. An account is maintained and opened for every process.
3. Every process account is debited along with materials, direct expenses, labor and overheads apportioned to the process.
4. The output of a process is transferred to the next process input of such process.
5. The completed output of the last process is transferred to the finished goods account.
The profit volume ratio of xltd. is 50% and the margin of safety is 40%.you are required to calculate the net profit if sales volume is rs.100,000?
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