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The following are limitations of job costing. This is in contrast to other systems.
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  • Compute profit from a job or a batch.
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    A separate batch cost sheet is used for each batch.

  • The next step in the process is to post the inventory values to the inventory accounts in the general ledger.
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  • Each batch is allotted a batch number.
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    On completion of production the cost per batch is determined as.

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  • .
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    A cost unit is a specific contract.

  • The annual carrying cost is Rs.
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    As I mentioned earlier on this blog, Bulk materials is not relevant for costing.

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    .