ECONOMICS

Detailed explanation-1: -A process costing system is a method typically used within certain sectors of the manufacturing industry to determine the total production cost for each unit of product. It accumulates cost from each process or department and allocates them to the individual products produced.

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: -Process costing is used when output is produced in a continuous process system, and it is difficult to separate individual units of output.

Detailed explanation-4: -The purchase of raw materials on account in a process costing system is recorded with a: Debit to Raw Materials Inventory and a credit to Accounts Payable. A production department is an organizational unit of a factory that has the responsibility for at least partially manufacturing or producing a product or service.