Abstract
After studying this chapter you should be able to:
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distinguish between process and job costing;
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explain the accounting treatment of normal and abnormal losses;
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prepare process, normal loss, abnormal loss and abnormal gain accounts when there is no closing work in progress;
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calculate the value of work in progress, completed production and abnormal loss using the weighted average and first-in, first-out methods of valuing work in progress;
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recognize that normal losses should be charged only to those units which have passed the inspection point;
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differentiate between the different cost per unit calculations which are necessary for stock valuation, decision-making and performance reporting for cost control.
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References and Further Reading
Forrester, D.A.R. (1982) Process costing in text and content, Management Accounting (UK), November, 34–6.
Pogue, G.A. (1985) Process costing, Students’ Newsletter, Chartered Association of Certified Accountants, November, 26–8, 30, 42.
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© 1994 Colin Drury
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Drury, C. (1994). Process costing. In: Costing. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-6880-7_6
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DOI: https://doi.org/10.1007/978-1-4899-6880-7_6
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-412-58780-1
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