Process Costing

Question 1

Abnormal loss

Answer 1

Any actually loss units in excess of the normal loss units - Cr on process account and Dr in abnormal loss account

Question 2

Abnormal gain

Answer 2

And actual units that are less than the normal loss units-Dr on process account - Cr on abnormal gain account then Cr on spl

Question 3

Conversion costs

Answer 3

Labour and overhead costs of the process -Dr on process T account

Question 4

Normal loss

Answer 4

The expected loss from the process

Question 5

Process costing

Answer 5

A costing system where the unit cost is found by averaging the period costs of the process over the expected good output from the process.

Question 6

Cost per ‘good’ unit

Answer 6

total process costs - scrap
proceeds normal loss
= —————————–
Units input - normal loss units

Question 7

Opening wip

Answer 7

Opening wip + input units = good output +normal loss +/- abnormal loss/gain + closing wip

Question 8

Equivalent units

Answer 8

EU = the number of complete units to which the work in progress is equivalent

Question 9

Closing work in progress

Answer 9

Partially completed units from a process at the end of the period

Question 10

Opening work in progress

Answer 10

Partially completed units brought forward at the beginning of the period