CIMA P1 Syllabus A. Cost Accounting For Decision And Control - Accounting By-Products & Joint Products - Notes 8 / 10
Process accounts & by-products / joint products
When preparing process accounts, joint costs should be treated as ‘normal’ output from a process.
The treatment of by-products in process costing is similar to the treatment of normal loss.
The by-product income is credited to the process account and debited to a by-product account.
To calculate equivalent units in a period, by-products (like normal loss) are zero equivalent units.