After studying this chapter you should be able to:
Understand the meaning and definition of process costing.
Enumerate the salient features of process costing.
Distinguish between job costing and process costing.
Know the different types of processing.
Identify the elements of manufacturing cost in a process industry.
Understand and apply process losses and wastages.
Explain the concept of equivalent production.
Prepare all necessary accounts relating to process accounts.
Explain the terms: by-products, joint products and co-products.
Understand and apply the accounting treatment of by-products and joint products.
Realize the importance of inter-process profits.
Explain the meaning of key terms.