Standard costing-reg
This query is : Resolved
19 October 2013
Hi,
We are maintaining standard price system for WIP and FG.We have 1 to 7 operations to finish the final product but we are not maintaining operation wise costing.Here my question is when one product reject at 1st or 2nd operation we are booking rejection cost based on the finished standard price.but actual rejection cost is low because only 2 operations done.so how to book(expenditure)rejection cost when we maintain standard costing system?
Note:we are using SAP
We are maintaining standard price system for WIP and FG.We have 1 to 7 operations to finish the final product but we are not maintaining operation wise costing.Here my question is when one product reject at 1st or 2nd operation we are booking rejection cost based on the finished standard price.but actual rejection cost is low because only 2 operations done.so how to book(expenditure)rejection cost when we maintain standard costing system?
Note:we are using SAP
20 October 2013
Since the products passing through 7 process, need to maintain the process costing system and work in progress need to be valued accordingly the stage of process not on the cost of finished goods. so maintain the costing based on the process and value the actual WIP or rejected product value accordingly the stage od rejection
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Traces submitting correction statement error
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- Residential status of non resident
- Rent claimed on building given on permissive possession basis
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
