PROCESS COSTING FILL IN THE BLANKS

1. Manufacturing costs are accumulated for each production department or process. 2. Under processing industries production is continuous and emphasizes on standardized product. 3. Process costing is basically used in manufacturing industry. 4. Abnormal Gain arises when actual loss is less than the normal loss expected. 5. Scrap means discarded material emerging from certain manufacturing process. 6. Process costing may also have work in progress account. 7. In process costing separate ledgers are maintained for each process. 8. Labour costs incurred in a particular process are posted into the debit side of the process account concerned. 9. Items of expenditure which can be directly attributed to a process are debit to the relative process account. 10. Completed units are transferred to finished goods. 11. Process loss can be divided into normal and abnormal loss. 12. Normal losses are absorbed by goods production. 13. The sale of scrap is transferred to Abnormal loss account. 14. Manufacturing cost is accumulated by department or process for a particular time period. 15. Total costs of process one is transferred as raw materials to next process. 16. The amount realized from the sale of scrap is called Abnormal loss. 17. Output of each process is input of other process. 18. Cost per unit of output computed is used to value the output transferred to next process. 19. The abnormal loss account is debited and relevant process account is credited. 20. Process costing is basically used in manufacturing industries.