PROCESS COSTING

The process costing system is a focus on the process quantity that the company used to produce a product. The production process is continuous resulting in homogeneous process until it stops. So in this project we would like to consider the process involved in production of Milk and also to ascertain the cost involved in each process and its final price. To also study about the different cost involved in the process and its effect on total process cost. For above mentioned objectives of the study, the data will be collected i.e., through primary data – direct interview with KMF employees in Yelahanka. The process costing system is a focus on the process quantity that the company use to produce a product. the production process is a continuous, resulting in homogeneous process until it stops. Equivalent unit are those which are not completed. Although such materials are complete in time production system, transforming the materials into final product. Calculate the cost of incomplete conversion is typically the focus of calculating equivalent units for work in process. the current costs to the equivalent units depend on inventory evaluation system used by the company. the process is the same, simply replace direct materials instead of conversion costs in the process.