Process Costing Method (Cost Accounting)
Learn Process Costing Method
Description
Meaning of Process Costing
Objective of Process Costing:
1. Selling price at the end of every process can be calculated.
2. To find out profit at the end of every process.
3. Make or buy decision.
4. Sold or Further processing decision.
5. To find out the total cost and cost per unit of every process.
Application of Process Costing :
1. Textile mill
2. Sugar mill
3. Chemical Industry
4. Petroleum Industry
5. Cement Manufacturing
6. Vegetable Ghee Industry
7. Oil refining
8. Soap making
9. Lather industry
10. Distilleries Industry
11. Drugs Industry
12. Paint industry
Format of Process Costing
Normal Wastage, Abnormal Wastage and Abnormal Gain/Effectiveness
Meaning of Wastage/Loss in Process
(a) Normal Wastage/Normal loss
Meaning of Normal wastage
Format of Normal Wastage Account
Entries of Normal wastage
(b) Abnormal wastage/Abnormal loss
Meaning of Abnormal wastage
Entries of Abnormal wastage
Meaning of Abnormal Gain in Process
Disclosure Of Abnormal Wastage (Or) Abnormal Gain
Calculation of Amount of Abnormal Wastage Or Gains
Entries of Abnormal Gain
Inter Process Profit
Meaning of Inter Process Profit
Contents of Inter Process Profit :
1. To maintain secrecy of correct cost of process.
2. To know whether the cost of production competes with the market price.
3. To find out the efficiency of each process.
4. To know the profit included in each process.
5. To know whether a product should be processed internally or to be bought in the market
Calculation of Amount Transfer to P/L
Joint Product
Meaning of Joint Product
By-Product
Meaning of By-Product
What You Will Learn!
- Process Costing
- Meaning and Objectives of Process Costing
- Application of Process Costing
- Formats of Process costing
- some practical problems
Who Should Attend!
- Any Student who pursuing in B,com M,com BBA MBA 11th & 12th Commerce C.A. C.S. and C.M.A.