ECONOMICS

Detailed explanation-1: -Costs are assigned to each specific job in a process cost system. In a process cost system, total costs are determined at the end of a period of time, such as a month. In a process cost system, the unit cost is total manufacturing costs divided by the equivalent units produced during the period.

Detailed explanation-2: -Process costing is a costing method or an operational type of costing in which a manufacturer tracks the cost of production of a sequence of continuous or repetitive processes required to produce a product.

Detailed explanation-3: -How is process costing calculated? Product costs are allocated to the departments or processes each item passes through over a set period, instead of tracing costs to individual items produced. The total process cost is divided by the total number of items, resulting in an average cost for each item.

Detailed explanation-4: -In accounting, process costing is a method of assigning production costs to units of output. In process costing systems, production costs are not traced to individual units of output. Costs are assigned first to production departments. Then assign the costs to units of output as they move through the departments.