Scribd
Upload
797 views1 page

Mind Map Process Costing

Process costing is a method to determine the cost of goods that are mass produced continuously in a production process. It involves collecting all production costs incurred in a period and distributing them equally among the units produced. Key characteristics include standardized products, accumulated costs by process, and recording production costs either physically or perpetually. Common methods to calculate average production costs include first in first out and average base price. The base price per unit is calculated by dividing total production costs by the number of units produced.

Uploaded by

Andhika Bella Prawitasari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
797 views1 page

Mind Map Process Costing

Process costing is a method to determine the cost of goods that are mass produced continuously in a production process. It involves collecting all production costs incurred in a period and distributing them equally among the units produced. Key characteristics include standardized products, accumulated costs by process, and recording production costs either physically or perpetually. Common methods to calculate average production costs include first in first out and average base price. The base price per unit is calculated by dividing total production costs by the number of units produced.

Uploaded by

Andhika Bella Prawitasari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

PROCESS COSTING ANDHIKA BELLA PRAWITASARI

7101420173

A.Definition of Process B.Characteristics of process costing


Costing C.Process costing system
recording method
 Mass producing of goods and carried out continuously
The method of determining the
cost of principal by collecting  Production is intended to replenish supplies, and does not 1. Physical system

production costs that occur in a depend on orders


Calculation of production costs is carried out at the end
certain period, then distributed 
of the relevant period. Production cost expenses
3. The resulting product is a standard product set by the
equally to the products produced including raw material costs, labor costs, and factory
company, so in terms of shape, size, and quality each unit of
in the relevant period. overheads are recorded at the end of the relevant
the product is the same.
period. At the end of the period production cost

4. Accumulated costs by process accounts (BBB, BTK, BOP) are allocated to the

 production cost overview account.

2. Perpetual method
E.Process costing system
1. Average base price method The calculation of production costs is done
recording method
continuously so that the production costs that occur
can be known at any time. Changes in the purchase and
 The amount of the underlying price of the product use of raw material supplies, auxiliary materials, in-
2. First In First Out (FIFO) Method
in the initial process is added to the production cost process goods, and finished goods are recorded
incurred in the corresponding period divided by the
continuously and always indicate the last position.
equivalent unit of the product to produce the
The production cost of the current average base price.
period is first used to complete the
product which at the beginning of the
period is still in process, only then the  Calculation of average production cost = (cost of D.Calculation of prices with
rest is used to process the product that goods in the initial process + production costs process costing
is included in the process of the current incurred in the corresponding period) : (Number of
E.
period. finished products processed + (completion rate (%)
x number of products in the final process period) Base price per unit = Total production cost

Number of products in production

You might also like