The Important Components of Cost Accounting Assignment Solutions Online
Cost Accounting is a branch of Accountancy
which deals with the maintenance of accounts with respect to the raw
materials, work in progress goods, finished goods etc. It is used to
ascertain the amount of profit earned from the procurement and
processing of raw materials into finished goods. Cost Accounting is
undertaken by the Cost Management of the organization to monitor the
usage of raw materials, their conversion to finished goods and the cost
of such conversion.
In a Cost Accounting Assignment Solutions Online, you need to be aware of the following components of Cost Accounting:
• Raw Materials Account
This is the first account you have to make in cost accounting. It deals with the raw materials that are ordered from the stores of the organization. When it is ordered from the stores, the raw materials account is debited while the stores account is credited. This is used to calculate the raw materials used in the production process.
You need to ensure that this is the first account you make in your assignment and correctly debit the account when the raw materials are transferred from the store. If you are told that the raw materials were returned then you will credit the raw materials account.
• Work In Progress Account
The Balance of the Raw Materials Account is transferred or debited into the Work In Progress or WIP account. This account shows the cost of conversion of raw materials into finished goods.
The wages of workers engaged in the production process is also transferred into this account. Any other resources used in the conversion process are debited to the work in progress account. This is an essential account in the Online Cost Accounting Homework Solutions. If you have some work in progress remaining at the end of the year then it will be shown as a part of Stocks in the Balance Sheet.
• Finished Goods Account
After the conversion process is over, the balance of the Work In Progress Account with respect to the completed products are transferred to the Finished Goods Account. The required profit margin on the goods is added to the account and then transferred to the sales account.
• Wages Account
The Wages Account records the wages accrued and paid to the workers engaged in the process. It is an essential part of the conversion process hence its balance is transferred to the Finished Goods Account.
• Sales Account
The balance of the Finished Goods Account is transferred to this account and the Profit margin is added. Subsequently it is transferred to the General Profit & Loss Account.
• General Profit & Loss Account
In the Online Cost Accounting Homework Solutions, the General Profit & Loss is basically the summarization of the entire process of conversion of raw materials into finished products. This is used to get the Profit earned on the conversion process.
As a student you will encounter many assignments dealing with cost accounting problems. So while you are completing them remember the above mentioned accounts to ensure you include all of them as per the requirements of the problem.
It is a common topic that has been asked in either your Cost Accounting Assignment Solutions Online. When you take help of help manuals and study about it, you will find Cost Accounting Homework Solutions.
In a Cost Accounting Assignment Solutions Online, you need to be aware of the following components of Cost Accounting:
• Raw Materials Account
This is the first account you have to make in cost accounting. It deals with the raw materials that are ordered from the stores of the organization. When it is ordered from the stores, the raw materials account is debited while the stores account is credited. This is used to calculate the raw materials used in the production process.
You need to ensure that this is the first account you make in your assignment and correctly debit the account when the raw materials are transferred from the store. If you are told that the raw materials were returned then you will credit the raw materials account.
• Work In Progress Account
The Balance of the Raw Materials Account is transferred or debited into the Work In Progress or WIP account. This account shows the cost of conversion of raw materials into finished goods.
The wages of workers engaged in the production process is also transferred into this account. Any other resources used in the conversion process are debited to the work in progress account. This is an essential account in the Online Cost Accounting Homework Solutions. If you have some work in progress remaining at the end of the year then it will be shown as a part of Stocks in the Balance Sheet.
• Finished Goods Account
After the conversion process is over, the balance of the Work In Progress Account with respect to the completed products are transferred to the Finished Goods Account. The required profit margin on the goods is added to the account and then transferred to the sales account.
• Wages Account
The Wages Account records the wages accrued and paid to the workers engaged in the process. It is an essential part of the conversion process hence its balance is transferred to the Finished Goods Account.
• Sales Account
The balance of the Finished Goods Account is transferred to this account and the Profit margin is added. Subsequently it is transferred to the General Profit & Loss Account.
• General Profit & Loss Account
In the Online Cost Accounting Homework Solutions, the General Profit & Loss is basically the summarization of the entire process of conversion of raw materials into finished products. This is used to get the Profit earned on the conversion process.
As a student you will encounter many assignments dealing with cost accounting problems. So while you are completing them remember the above mentioned accounts to ensure you include all of them as per the requirements of the problem.
It is a common topic that has been asked in either your Cost Accounting Assignment Solutions Online. When you take help of help manuals and study about it, you will find Cost Accounting Homework Solutions.
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