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Process costing

In process costing while creating Finished Stock account why do we take cost of sales amount and not the actual sales(i.e., cost of sales + profit) amount.

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Sri Varshini

Sri Varshini

CA Inter

575

29-Aug-20 17:57

55

Answers (4)

You can credit Sales instead of Cost of sales. If you credit Sales, you need to compute the profit in the Finished stock account and the same will be credited to the Income statement.


Madhuri Veluri

Madhuri Veluri

CA Inter

2K+

31-Aug-20 11:02

Madhuri Veluri

You can credit Sales instead of Cost of sales. If you credit Sales, you need to compute the profit in the Finished stock account and the same will be credited to the Income statement.

If i credit sales profit will be debited in Finished Stock account and that should be transferred to income statement. Am I correct mam


Thread Starter

Sri Varshini

Sri Varshini

CA Inter

575

31-Aug-20 13:44

Thank you mam


Thread Starter

Sri Varshini

Sri Varshini

CA Inter

575

31-Aug-20 14:41

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