Material cost is the cost of the raw materials and parts used to create a product. The materials can be simply identified with the consequential manufactured goods (otherwise they are well thought-out to be joint costs). The direct material cost is one of the little variable costs concerned in the production procedure; as such, it is second-handed in the beginning of throughput from manufacture process. Throughput is sales deficiency all totally variable everyday expenditure.
General Questions and Answers about Process Costing System: Questions: What is the primary objective in process costing? See answer Job order and process costing procedures are used by different types of industries. Discuss the procedure appropriate for each type. See answer For the following
Procedures for Materials, Labor, and Factory Overhead Costs Accumulations: In process costing, materials, labor, and factory overhead costs are accumulated in the usual accounts, using normal cost accounting procedures. Costs are then analyzed by departments or processes and charged to departments by appropriate journal