Quiz 4: Process Costing


Process costing journal entries: img img

Process costing can be defined as a costing system where in all the costs related to the production are clubbed together and distributed among the number of units in order to find out the unit cost of each such product. Situations where Process costing is used: Process costing is used when a single type of homogeneous products/ services are produced/offered by a single organization/ manufacturing unit. Examples of industries using Process costing system are: Bricks industry, Paper companies, General Mills etc.