Methodological Issues of Application of Process Costing of Product Costing
Abstract
This article proves that the development of a methodical procedure for calculating the cost of products according to international standards is an urgent issue for the enterprises of our country. The article analyzes the literature on the application of process costing. Based on the study of foreign experiences, based on the practical materials of enterprises operating in our country, the procedure for calculating the equivalent unit of products in process costing is presented. A five-step methodological approach to process costing using FIFO and weighted average methods is illustrated in practical examples. The results of FIFO and weighted average method are compared and the reasons for the differences are analyzed. The application of these methodological approaches based on advanced foreign experiences in the practice of enterprises serves to form reliable information about the cost of products.
References
2. National standards of accounting report No. 4 “Inventories”. https://lex.uz/docs/4890446
3. 2-IFRS “Inventories”. https://nrm.uz/contentf?doc=650002_(ias)_2_zapasy&products=1_vse_zakonodatelstvo_uzbekistana
4. Golovina T.A. The choice of methods for calculating the cost of production in order to manage the profit of an enterprise // Journal “Management Accounting” No. 6 - 2006. https://dis.ru/library/701/25874/
5. Process costing: FIFO method. https://allfi.biz/poprocessnaja-kalkuljacija-metod-fifo/
6. https://www.accaglobal.com/cis/ru/qualifications/russian-language-advanced-diploma/Learningresources/Introduction_to_Finance_and_Business_Rus/Technical_articles/Process_costing.html
7. Vakhrushina M. A. Accounting management accounting: textbook. M.: Omega-L, 2006.; A.A. Bolotin. Costing as an element of profit management of a manufacturing enterprise. // 38(236)-2012. https://cyberleninka.ru/article/n/kalkulirovanie-sebestoimosti-kak-element-upravleniya-pribylyu-proizvodstvennogo-predpriyatiya
8. Management Accounting – Decision Management Tim Thompson presents a sample self-test question that explains what process costing does – and does not – tell us when it comes to evaluating joint products. https://www.cimaglobal.com/Documents/ImportedDocuments/fm_feb06_p37-43.pdf
9. S.N. Tashnazarov, D.S. Tashnazarova. International standards of financial reporting. Lecture text - Samarkand, 2019. p. 230-231.
In submitting the manuscript to the International Journal on Integrated Education (IJIE), the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
- That it is not under consideration for publication elsewhere,
- The publication has been approved by the author(s) and by responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
License and Copyright Agreement
Authors who publish with International Journal on Integrated Education (IJIE) agree to the following terms:
- Authors retain copyright and grant the International Journal on Integrated Education (IJIE) right of first publication with the work simultaneously licensed under Creative Commons Attribution License (CC BY 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the International Journal on Integrated Education (IJIE) published version of the work (e.g., post it to an institutional repository or edit it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
