Unit 3: Process Costing
In Unit 2, you learned about job costing. A job costing system is used by companies that produce unique products or jobs. In this unit, you'll learn about process costing, a system used by companies that produce similar or identical units of product in
batches and employ a consistent process. Process costing systems track costs by processing department, whereas job costing systems track costs by job. Process costing is best used in an assembly-line production environment.
Completing this unit should take you approximately 3 hours.
3.1: What is a Process Costing System?
3.2: Direct Materials, Direct Labor, Factory Overhead
3.3: Assigning Costs in Four Steps
3.4: Cost of Production Report