Question

Material costing and valuation

Answer 1

Answer:

Material costing is the process of determining the costs at which inventory items are recorded into stock, as well as their subsequent valuation in the accounting records. We deal with these concepts separately.

Answer 2

Answer:

Material cost is the cost of materials used to manufacture a product or provide a service. Excluded from the material cost is all indirect materials, such as cleaning supplies used in the production process. Follow these steps to determine the amount of material cost to assign to a unit of production (such as a completed finished goods item