Net production costs Cost of goods available for sale units Rp. Ending inventory units Rp. Gross profit Marketing and administration costs Operating income These methods do not require complicat journal entries. Revenue receiv from sales of byproducts is debit to cash or accounts receivable. In the first three cases income from sales of byproducts is crit while in the fourth case production costs of the main product are crit.
Also read Factors Affecting
Production Management Complete Portugal WhatsApp Number List Discussion Method Revenue from sales of byproducts less the costs of placing the byproduct on the market i.e. marketing and administrative costs and also less processing costs is shown on the income statement in a manner similar to that shown in Method . Method recognizes the ne to assign some costs to the byproduct . However this method does not attempt to allocate main product costs to byproducts . Any costs involv in further processing or marketing of byproducts are record in separate accounts.
All figures are display
On the income statement. This is New Zealand Phone Number List achiev by following one of the procures describ in Method . Recording in the journal for Method involves charging byproduct revenue for the additional work requir and possibly also for factory overhead costs. costs can also be allocat to byproducts on a pretermin basis. Certain companies have an account call a byproduct account where all additional costs are debit and all income statements are crit. The balance of this account is shown in the income statement using one of the procures describ in Method . However the accumulat production costs that apply to byproduct inventory must be report on the balance sheet. Also read Capital Production Factors Definition Types Characteristics and Functions Cost method byproduct.
