Ma garrison  c4 process costing
differences from job-order costing
-used when a company produces a continuous flow of units that are indistinguishable from one another
-process costing accumulates costs by department and assign these costs uniformly to all identical units that pass through the department during a period
-process costing systems compute unit costs by department

a processing department is an organizational unit where work is performed on a product and where materials labo or overhead costs are added to the product

process costing has more than one work-in-process account
material labor and overhead costs can be added in any processing department

key concept 1
the weighted-average method calculates unit costs by combining costs and output from the current and prior periods

key concept 2
company often consolidate labor and overhead to conversion costs to simplify the calculation

key concept 3
equivalent units is the product of the number of partially completed units and the percentage completion of those units with respect to the processing in the department

weighted-average method
step 1- compute the equivalent units of production
step 2- compute the cost per equivalent unit
step 3- assign cost to units
step 4- prepare a cost reconciliation report