PROCESS COSTING

MASTER OF COMMERCE ACCOUNTANCY SEMESTER I

2013-14

SUBMITTED BY: PRANESH PRAKASH KHAMBE ROLL NO. 22

GUIDE NAME Prof. Sumathi Kulkarni

V.E.S COLLEGE OF ARTS, SCIENCE AND COMMERCE

Sindhi Society, Chembur, Mumbai 71 Ph No. 25292267

PROCESS

COSTING

MASTER OF COMMERCE Accountancy SEMESTER I

Submitted

In Partial Fulfillment of the requirements For the Award of the Degree of Master of Commerce Accountancy

By

PRANESH PRAKASH KHAMBE

ROLL NO. 22

V.E.S COLLEGE OF ARTS, SCIENCE AND COMMERCE

Sindhi Society, Chembur, Mumbai 71 Ph No. 25292267

V.E.S COLLEGE OF ARTS, SCIENCE AND COMMERCE

Sindhi Society, Chembur, Mumbai 71

Ph No. 25292267

CERTIFICATE
This is to certify that Shri/Miss ____________________ ______________________________________of M.Com. Accountancy Semester I (2013-14) has successfully completed the project on ______________________________________________.

Course Coordinator

Principal

Project Guide/ Internal Examiner

External Examiner

DECLARATION

I, ________________________________________the student of M.Com. Accountancy Semester I (2013-14) hereby declare that I have completed this Project on

_________________________________.

The information submitted is true and original to the best of my knowledge.

_____________________ Students Signature Pranesh P. Khambe Roll No. 22

ACKNOWLEDGEMENT
This project cherishes the sincere contributions of many people for providing guidance, support and streaming my efforts. First of all, I am obliged to acknowledge the initiation of our respected principal MRS. J.K. PHADNIS. I express my deep gratitude and respect to my guide Mrs. SUMATHI KULKARNI for his keen interest and guidance, strong motivation and constant encouragement during the course of the project work. I thank her for his great patience and useful suggestions apart from invaluable guidance to me. I would like to thank the University of Mumbai, for introducing Banking and Insurance course, thereby giving the student a platform to abreast with changing business scenario, with the help of theory as a base and practical as a solution. I am grateful to VES College of Arts, Science and Commerce for giving me the opportunity to understand and experience the concept of PROCESS COSTING. I also kindly appreciate the involvement of the teaching and non teaching staff and the library staff and to those too who have directly or indirectly contributed in making this project successful. And also I would like to thanks my parents and family member for their moral support that kept my spirit up during the endeavor. Last but not least I would like to thanks my friends who really help in my project.

RESEARCH DESIGN
PURPOSE OF THE STUDY
THE PURPOSE OF THE STUDY IS TO UNDERSTAND THE CONCEPT of Process Costing.

OBJECTIVES OF THE STUDY

To outline the development of Process costing. To know the current scenario and the future trends in process costing. To make a detailed study about the Process costing. To obtain information about the various costing methods to be used.

LIMITATIONS OF THE STUDY

Internet is the useful medium to find information on this project but, it was difficult to analyse this information and use it for the purpose of project.

RESEARCH METHODOLOGY
Research Methodology is a way systematically solves the research problem. It is an important guideline and leads to completion of any project work through observation, Data collection and Data analysis. The section includes the overall research design, the sampling procedure, data collection method, the field method, analysis and procedure.

PRIMARY DATA DATA COLLECTION METHOD BOOK SECONDARY DATA INTERNET Data collected for the research can be classified as Primary Data and Secondary Data

Primary Data:
Primary Data is facts and information collected specifically for the purpose of the investigation at hand.

Secondary Data:
Secondary data is facts and information gathered not for the immediate study at hand but for some other purpose. Secondary data has been gathered by others for their own purposes, but the data could be useful in the analysis of a wide range of real property. In general, secondary data exists in published sources. The secondary data has been collected through: Books and Internet

EXECUTIVE SUMMARY
This project is about Process Costing. Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. Cost accounting is a process of collecting, analyzing, summarizing and evaluating various alternative courses of action. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability. Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future. Cost accounting is a process of collecting, analyzing, summarizing and evaluating various alternative courses of action. Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future. Since managers are making decisions only for their own organization, there is no need for the information to be comparable to similar information from other organizations. Instead, information must be relevant for a particular environment. Process costing is a form of operations costing which is used where standardized homogeneous goods are produced.

INDEX
Sr. No. 1. 2. 3. 4. 5. Particulars Meaning of process costing Features of process costing Steps for dealing with process costing Reasons for Use DISTINCTION BETWEEN JOB COSTING & PROCESS COSTING 6. 7. 8. 9. 10. Process cost Procedures Joint products and by-products Costing methods Conclusion Bibliography 9 21 28 36 37 Page No. 1 3 4 6 8