Hi Friends
can some tell me the treatment of rejection cost of a product in accounts..?
Also whether rejection cost is part of total cost of a specific product.?
Thanks
CA Neha Gupta
Hi Friends
can some tell me the treatment of rejection cost of a product in accounts..?
Also whether rejection cost is part of total cost of a specific product.?
Thanks
CA Neha Gupta
Dear Neha,
1) Rejection of Manufactured Product When "NORMAL" is to be treated as part of Product Cost it self as Normal Loss.
2)When the same is Abnormal it may be transfered to Costing Profit and Loss A/c or Shown as reconcilition between Costing and Financial Accounts, as in FA it is expensed out as period cost.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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