{"id":907,"date":"2021-04-01T00:16:16","date_gmt":"2021-04-01T00:16:16","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-managerialaccounting\/?post_type=chapter&#038;p=907"},"modified":"2021-08-15T20:16:49","modified_gmt":"2021-08-15T20:16:49","slug":"application-of-process-costing","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-managerialaccounting\/chapter\/application-of-process-costing\/","title":{"raw":"Introduction to Accumulating and Assigning Costs","rendered":"Introduction to Accumulating and Assigning Costs"},"content":{"raw":"<h2>What you will learn to do: assign costs to various stages of production<\/h2>\r\nHere is an overview of what you will learn in detail in this section:\r\n\r\n<iframe src=\"\/\/plugin.3playmedia.com\/show?mf=6352571&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=guZc84c5HNI&amp;video_target=tpm-plugin-7b3z6n2y-guZc84c5HNI\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe>\r\n\r\nYou can view the <a href=\"https:\/\/oerfiles.s3.us-west-2.amazonaws.com\/Managerial+Accounting\/Transcripts\/ProcessCosting_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for \"Process Costing\" here (opens in new window)<\/a>.\r\n\r\nThere 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.\r\n\r\nWhen you are done with this section, you will be able to:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">Prepare a production cost report for the first stage of a multi-step process using the weighted-average method<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">Prepare a production cost report for a second or subsequent stage of a multi-step process using the weighted-average method<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">Prepare a production cost report using the FIFO method<\/li>\r\n<\/ul>\r\n<h3>Learning Activities<\/h3>\r\nThe learning activities for this section include the following:\r\n<ul>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">Reading: First-stage production report<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">Self Check: First-stage production report<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">Reading: Subsequent-stage production report<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">Self Check: Subsequent-stage production report<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">Reading: Production report using FIFO<\/li>\r\n \t<li style=\"font-weight: 400;\" aria-level=\"1\">Self Check: Production report using FIFO<\/li>\r\n<\/ul>","rendered":"<h2>What you will learn to do: assign costs to various stages of production<\/h2>\n<p>Here is an overview of what you will learn in detail in this section:<\/p>\n<p><iframe loading=\"lazy\" src=\"\/\/plugin.3playmedia.com\/show?mf=6352571&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=guZc84c5HNI&amp;video_target=tpm-plugin-7b3z6n2y-guZc84c5HNI\" width=\"800px\" height=\"450px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe><\/p>\n<p>You can view the <a href=\"https:\/\/oerfiles.s3.us-west-2.amazonaws.com\/Managerial+Accounting\/Transcripts\/ProcessCosting_transcript.txt\" target=\"_blank\" rel=\"noopener\">transcript for &#8220;Process Costing&#8221; here (opens in new window)<\/a>.<\/p>\n<p>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.<\/p>\n<p>When you are done with this section, you will be able to:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Prepare a production cost report for the first stage of a multi-step process using the weighted-average method<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Prepare a production cost report for a second or subsequent stage of a multi-step process using the weighted-average method<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Prepare a production cost report using the FIFO method<\/li>\n<\/ul>\n<h3>Learning Activities<\/h3>\n<p>The learning activities for this section include the following:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Reading: First-stage production report<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Self Check: First-stage production report<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Reading: Subsequent-stage production report<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Self Check: Subsequent-stage production report<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Reading: Production report using FIFO<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Self Check: Production report using FIFO<\/li>\n<\/ul>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-907\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Introduction to Accumulating and Assigning Costs. <strong>Authored by<\/strong>: Joseph Cooke. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>Process Costing. <strong>Authored by<\/strong>: Edspira. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/guZc84c5HNI.\">https:\/\/youtu.be\/guZc84c5HNI.<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube License<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":364389,"menu_order":6,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Introduction to Accumulating and Assigning Costs\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"Process Costing\",\"author\":\"Edspira\",\"organization\":\"\",\"url\":\"https:\/\/youtu.be\/guZc84c5HNI.\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Standard YouTube 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