Page 71 - F2 Slides 2017-18

Process Costing – Losses and Gains

Normal Abnormal Abnormal
Losses losses Actual Losses Gains
> Normal
EXPECTED losses Actual Losses
< Normal
to occur
losses
Pickup a
share of

Do not pick up process costs Abnormal
gains debit
a share of the process
process costs
Valued like a account
unit of good
Sometimes output Benefit credits
sold for scrap
– credit the statement
of profit or
process Written off in
account. statement of loss
profit or loss

Remember to
Cost reduced credit the
by scrap scrap account
proceeds

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