## Finished Goods Account
When the final process completes, output is transferred to the Finished Goods Account at Normal Cost per Unit. Goods then flow out to Cost of Sales as they are sold.
### Format of Finished Goods A/c
| Particulars | Units | Total | Particulars | Units | Total |
|---|---|---|---|---|---|
| To Process A/c | Units of FG | @ Normal Cost/unit | By Cost of Sales A/c | Units sold | @ Normal Cost/unit |
| By Balance c/d | Balance figure | Balance figure |
### By-Product Treatment in Process Costing
While preparing finished goods, sometimes a by-product also gets produced (as discussed in the Joint Products / By-Products chapter).
Valuation of by-product while preparing the process account:
```
By-product value = Selling Price − Cost to Produce (further processing) − Selling Expenses
```
This value (NRV of the by-product) is credited to the Process A/c, effectively reducing the cost charged to the main product.
### Different Types of Process Costing Questions
1. Basic process account preparation.
2. Preparation of Abnormal Loss A/c, Normal Loss A/c, Abnormal Gain A/c, FG A/c.
3. Units that are transferred to next process AND also sold in between.
4. Units that are transferred to next process at some profit (inter-process profit).
5. Equivalent Production — with Opening WIP and/or Closing WIP, using FIFO or Weighted Average method.