Question

Please identify 5 products that are produced using a process costing system. Detail please.

Answer 1

Process costing is a type of costing used for products which involves production in various processes. For example a rubber product is first rubber is melted then its put into molds and then cooled and finally decorated etc.

Process costing is used for products made by processes. Generally process system is used when products manufactured are homogeneous.

Basically products which go through various stages in completion are produced by process costing system.

Examples of process costing

1. Rubber products
2. Chemical product such as a medicine or tonic.
3. Beer or alcohol.
4. Food products such as chips
5. Paint and oils.