Process Costing Formula


1.       Cost of Abnormal Wastage
= Normal cost ÷ Normal output x Abnormal Wastage inn units
2.       Cost of Abnormal Effectives
= Normal Cost ÷ Normal Output x Abnormal Effectives in units
3.       Computation of Abnormal loss :
Quantity of abnormal loss = Normal output – Actual output
Normal output = Input – normal loss
4.       Value of abnormal loss = Normal cost of the normal output ÷ Normal output x units of Abnormal loss

Value of normal cost of normal output = Expenditure of the process – Scrap value of normal loss