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Process costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Process costing

  • This topic has 6 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • May 31, 2020 at 3:15 pm #572425
    Avatarhsnhn
    Member
    • Topics: 5
    • Replies: 5
    • ☆

    Distinguishable homogeneous mass.

    A t shirt manufacturing company…
    Is a characteristic for batch costing environment.
    The products are identifiable
    During the production process …

    Anddd
    Coca Cola company
    I.e indistinguishable homogeneous mass..

    My question is

    Does indistinguishable homogeneous mass means than

    The Products are not identifiable during the production process but after the completion of the process ?

    May 31, 2020 at 3:48 pm #572441
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    I will be surprised if the words ‘homogenous mass’ are actually used in the exam 🙂

    However, homogenous means ‘all the same’.

    From a costing point of view, we would probably cost t-shirts in batches. Not all t-shirts are the same (for example, there will be different sizes using different amounts of material) so we would maybe produce a batch of small shirts and cost them, a batch of large shirts and cost them, and so on).

    However for soft drinks are is made in huge quantities (it is only put in bottles later) and all the Coca Cola is exactly the same – we can’t distinguish one days production from another days production. So we don’t need to cost in separate batches.

    May 31, 2020 at 5:14 pm #572450
    Avatarhsnhn
    Member
    • Topics: 5
    • Replies: 5
    • ☆

    Yes dear sir but my question is

    My question is

    Does indistinguishable homogeneous mass means that

    The Products are not identifiable during the production process but after the completion of the process ?

    June 1, 2020 at 9:30 am #572482
    Avatarhsnhn
    Member
    • Topics: 5
    • Replies: 5
    • ☆

    @johnmoffat said:
    I will be surprised if the words ‘homogenous mass’ are actually used in the exam 🙂

    However, homogenous means ‘all the same’.

    From a costing point of view, we would probably cost t-shirts in batches. Not all t-shirts are the same (for example, there will be different sizes using different amounts of material) so we would maybe produce a batch of small shirts and cost them, a batch of large shirts and cost them, and so on).

    However for soft drinks are is made in huge quantities (it is only put in bottles later) and all the Coca Cola is exactly the same – we can’t distinguish one days production from another days production. So we don’t need to cost in separate batches.

    My question is

    Does indistinguishable homogeneous mass means that

    The Products are not identifiable during the production process but after the completion of the process ?

    June 1, 2020 at 10:28 am #572493
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    Yes it does (although I really do not know why you are asking this 🙂 )

    June 7, 2020 at 10:56 am #573037
    Avatarhsnhn
    Member
    • Topics: 5
    • Replies: 5
    • ☆

    Sir

    separately identifiable homogeneous mass and

    distinguishable homogeneous mass are having equal meanings right ?

    June 7, 2020 at 2:32 pm #573066
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    Correct 🙂

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    Posts
Viewing 7 posts - 1 through 7 (of 7 total)
  • The topic ‘Process costing’ is closed to new replies.

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