Question 1:
Illustrate the meaning of process costing? In what types of industries is process costing usually applied?
Question 2:
Explain the features of Process Costing. How is unit cost determined in the process costing?
Question 3:
What do you mean by the term inter-process profits? What is the utility of transferring the output of one process to the other process at more than cost?
Question 4:
In a manufacturing concern with some departments, the finished product of one department becomes the raw material of the next department. Would you advocate inclusion of gain in the transfer price of the material? Illustrate the effect of this in-the profit and loss account of the manufacturing concern as an entire?
Question 5:
State and describe the terms Joint Products and by-products. Explain the methods which might be employed in costing ‘Joint products’.
Question 6:
Describe in brief the methods of accounting for by-products.