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Costs are assigned to each specific job in a process cost system.
In a process cost system, total costs are determined at the end of a period of time, such as a month.
In a process cost system, the unit cost is total manufacturing costs divided by the equivalent units produced during the period.
The accumulation of the costs of materials, labor, and manufacturing overhead is the same in a process cost system as in a job order cost system.
More materials requisitions are generally required in a process cost system than in a job order cost system.
Equivalent units of production equals units completed and transferred out + units in beginning work in process.
Two equivalent unit computations are necessary—one for materials and the other for conversion costs.
The first step in preparing a production cost report is to compute the equivalent units of production.
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