In the process costing method, when multiple production steps are required, the five-step process costing procedure must be completed in each production department.

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Each production department will have its own set of materials, labor, and overhead costs that need to be tracked and allocated to the products being produced. The five-step process costing procedure helps ensure that these costs are accurately accounted for in each department before being combined to determine the total cost of the product.

In the Process Costing Method, When Multiple Production Steps Are