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Process Costing
Process costing is a bit more complicated than job order costing, which we studied last week. It is important to read the materials, watch the videos, and attempt to work through the examples to understand how to calculate equivalent units and equivalent costs per unit.
Discussion Requirment
Cost Systems
What type of industries are best suited for process cost systems? Discuss how the process cost system is tracked and recorded for one of the following types of business: (a) TV assembler, (b) building contractor, (c) automobile repair shop, (d) paper manufacturer, (e) custom jewelry manufacturer? In the business type you selected, what is the most important purpose of the cost of production report and how can it improve operations in that business type?
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.Your initial post should address all components of the question with a 600 word limit.Learning Outcomes
Explain a process costing system and identify when its use is most beneficial.Compare key similarities and differences between job order costing and process costing systems.Calculate product cost using process costing.
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