Process costing — OpenTuition Forums

MMohamed6y ago

Dear sir I have 3 questions ... Question 1. In the lecture notes I saw abnormal gain or loss and normal loss is recorded in an loss account .... But sir Under which elements of accounting ( (whether assets , expenses, liabilities or income ) Will that loss account appear ... Question 2.. And in the lecture notes it’s just stated as loss account , is it abnormal loss account or normal loss account sir ? ( just want to know for extra knowledge) Question 3 Sir Do we need to include the scrap value to the abnormal gain or loss account ? because in ACCA X i read that scrap is related to normal loss..... Thank you dear sir

John MoffatTutor6y ago#1

1. Abnormal losses are an expense. Abnormal gains are a negative expense. 2. Although you can have two accounts, it is more sensible to put all losses in just one account. 3. Any scrap proceeds on expected normal losses is taken into account when calculating the cost per unit. All scrap proceeds appear in the loss account. All of these points are explained in my free lectures. It seems as though you are using our lecture notes without watching the lectures. This is pointless because they are lecture notes and it is in the lectures that I explain and expand on the notes.

MMohamed6y ago#2

Oh okay dear sir ... Thank you so much . Sir is it correct if I tell this below statement, distinguishable homogeneous mass is a feature of weighted average costing of valuing inventory related to process costing right ? If that is correct then Distinguishable and indistinguishable homogeneous mass are both features of process costing ?

MMohamed6y ago#3

Hoping for the reply sir please

John MoffatTutor6y ago#4

Your statements would be correct (but are hardly likely to be relevant for Paper MA).

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