Upon completion of the job, determine the total cost and cost per unit. Apply overhead to the job upon completion of the job or the end of the accounting period whichever comes first at a very minimum. Used for production situations where each batch is distinct . Accumulate units produced within the department for the same time period. Determine the number of equivalent complete units that could have been produced given the costs incurred on the ones worked on.
Process cost is used in continuous production situations.
FIFO equivalent units are current period only units. Total transferred out cost. When FIFO costs are transferred to another production department, it receives the costs as the total transferred out rather than the individual costs of beginning inventory and started and completed. This is considered the inconsistency of FIFO costing as the transfer in is thus not FIFO and is not Average. Total costs accounted for and units accounted for represent the distribution of those items.