(3) The product of the first process becomes the raw material for the second process and so on. (1) The production of goods is continuous, except where the plant is shut-down for repairs, until the final product. Abnormal gains will be debited to the Process Account and credited to Abnormal http://www.roaring-girl.com/work/webwatch/ Gain Account. The Abnormal Gain Account is debited with the figure of reduced normal loss in quantity and value. At the end of the accounting year the balance in the Abnormal Gain Account will be carried to Profit and Loss Account.
Food and Beverage Industry
This can be done either using the weighted average method, standard costing method, or the first-in-first-out (FIFO) method. It is usually good accounting practice to carefully select the process costing method that best meets a business’s needs. Let’s assume, a manufacturing business completed 4,000 products and has another 1,000 units halfway through production, the total costs would be divided by 4,500 units