Discuss the justification of inter-process profits


Questions:

1. Discuss with figures the method of treatment of process loss and wastages under process costing method.

2. How will you deal with scrap material in process costs? Give a concrete example.

3. How process costs are determined under weighted average method? Mention the difference between the First In First Out method with regards to process cost and valuation of closing stock.

4. Discuss the justification of inter-process profits. What difficulties are faced in preparing the final accounts?

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Accounting Basics: Discuss the justification of inter-process profits
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