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constant gross margin ratethis method assumes that every product contributes an equal percentage of gross profit for every shilling of sales it works
physical measure and net realizable valuephysical measureunitjoint costs are assigned to the joint products according to the ratio of physical
methods required to allocate joint costs1 physicalunit measure2 constant gross margin rate3 net realizable
allocation of joint costswhereas two or more products of relatively high value emerge simultaneously from a single process they are named as joint
shrinkage - production processthis refers to a disappearance or loss of material inputs utilized throughout the production process it happens mainly
accounting treatment of spoilage costs1 normal spoilage costs these costs are assigned to the good output utilizing two approaches asi omission
process lossesmost manufacturing processes result in several portion of the raw materials utilized not being transformed into a reliable half
example of process cost reportlet suppose that the beginning work in progress in a company in the month of november was 1000 units that were 100
process cost reportthis is a commonly employed statement that traces the flow of units produced and costs incurred in the production process the
calculate cost or equivalent units the given work in progress account concerns to the blending department of a company a soft-drinks company for the
first in first out or fifo method - work in progressthis method considers merely those costs incurred throughout the recent period equivalent
weighted average method - work in progresswhile this method is employed all costs of production are considered in assigning costs to inventory the
methods of work in progressthe two main methods used for purposes of valuing the opening work in progress1 weighted average method2 fifo or first in
find out the cost per unit material a is added at the start of a production process overheads and labor are added continuously throughout the
determine equivalent units of the productlet assume there are 4000 units of a product in ending inventory out of that 60 percent are fully complete
valuation of work in progress the concept of equivalent unitsit is a notional quantity of completed goods in the production process this is a
process costing procedure1 the production factory is divided into a number of methods2 an account is maintained and opened for every process3 every
process costingit is a costing method which is applied wherever there are standard operations along with continuous production of homogeneous as
contract costing terminologyprinciples of profit income recognition in contractsthe notional profitthis is a component of two items asa profit
contract accountsit is a separate account such is maintained and opened for every contract undertaken for the reasons of accumulating cots every
contract costingit is a form of exact order costing which is applied to relatively large cost units that normally get a considerable length of time
example of batch costingthe budgeted variable overheads of a company for the year of 2001 are as given
batch costingthis is a kind of job costing that is utilized when production consists of limited repetitive work and definite number of item
accounting for job order costing1 direct labor dr wip control accountcr cash account2 accrued direct wages dr wip control accountcr wages
accounting for job order costing - direct materialsdirect materialsi dr stores ledger control account cr cash account - for cash