What you will learn to do: assign costs to various stages of production
Here is an overview of what you will learn in detail in this section:
You can view the transcript for “Process Costing” here (opens in new window).
There are two methods for using process costs: Weighted Average and FIFO (First In, First Out). Each method uses equivalent units and cost per equivalent units but calculates them just a little differently.
When you are done with this section, you will be able to:
- Prepare a production cost report for the first stage of a multi-step process using the weighted-average method
- Prepare a production cost report for a second or subsequent stage of a multi-step process using the weighted-average method
- Prepare a production cost report using the FIFO method
Learning Activities
The learning activities for this section include the following:
- Reading: First-stage production report
- Self Check: First-stage production report
- Reading: Subsequent-stage production report
- Self Check: Subsequent-stage production report
- Reading: Production report using FIFO
- Self Check: Production report using FIFO