{"id":132,"date":"2024-09-27T17:48:41","date_gmt":"2024-09-27T17:48:41","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/chapter\/application-of-process-costing\/"},"modified":"2024-10-01T19:38:45","modified_gmt":"2024-10-01T19:38:45","slug":"application-of-process-costing","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/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\n<section class=\"textbox watchIt\" aria-label=\"Watch It\">Here 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\" data-mce-fragment=\"1\"><\/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\n<\/section>&nbsp;\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<section class=\"textbox watchIt\" aria-label=\"Watch It\">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\" data-mce-fragment=\"1\"><\/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<\/section>\n<p>&nbsp;<\/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","protected":false},"author":6,"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 License\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":126,"module-header":"- Select Header -","content_attributions":[{"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 License"}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/132"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/wp\/v2\/users\/6"}],"version-history":[{"count":1,"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/132\/revisions"}],"predecessor-version":[{"id":310,"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/132\/revisions\/310"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/pressbooks\/v2\/parts\/126"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/pressbooks\/v2\/chapters\/132\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/wp\/v2\/media?parent=132"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=132"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/wp\/v2\/contributor?post=132"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/managerialaccounting\/wp-json\/wp\/v2\/license?post=132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}