ECONOMICS

Detailed explanation-1: -Total product costs can be determined by adding together the total direct materials and labor costs as well as the total manufacturing overhead costs.

Detailed explanation-2: -Process costing:This is the accumulation of labor, material and overhead costs across departments or entities, with the total production cost then being allocated to individual units. Process costing is used when large quantities of the same product are manufactured, usually in long production runs.

Detailed explanation-3: -When raw materials are requisitioned for a job, the Raw Materials Inventory account is debited. Work-in-Process Inventory is debited when indirect labor costs are incurred in a job order costing system. When direct materials are received on the production floor, they are recorded on the job cost record.

Detailed explanation-4: -What are Production Costs? production costs are the direct materials, direct labor, and manufacturing overhead used to manufacture products. The production costs are also referred to as manufacturing costs, product costs, a manufacturer’s inventoriable costs, or the costs occurring in the factory.