[Verse 1]
When products flow through stages one by one
Mass production keeps the process running
Identical units through departments streaming
Each step adds cost while the work keeps moving
From raw materials to the final line
We track the costs through process design
[Chorus]
Process costing flows, equivalent units show
What we've completed when the work's not done
Weighted average method or FIFO we go
Calculate the cost per unit, one by one
Beginning work, current work, ending work in play
Process costing shows us the accounting way
[Verse 2]
Department A starts with materials raw
Then labor and overhead follow the law
Transfer to B when the first stage ends
Costs accumulate as the product blends
Each department keeps its own account
Total up the costs, that's the amount
[Chorus]
Process costing flows, equivalent units show
What we've completed when the work's not done
Weighted average method or FIFO we go
Calculate the cost per unit, one by one
Beginning work, current work, ending work in play
Process costing shows us the accounting way
[Bridge]
Fifty percent complete means half the work is through
Multiply by units for equivalent view
Physical units in minus units out
That's the flow we need to figure out
Cost per unit equals total cost divided by
Equivalent units that we've identified
[Verse 3]
Production report tells the whole story
Beginning inventory to ending glory
Units started, units completed clean
Work in process somewhere in between
Costs assigned to finished goods today
The rest stays put until another day
[Chorus]
Process costing flows, equivalent units show
What we've completed when the work's not done
Weighted average method or FIFO we go
Calculate the cost per unit, one by one
Beginning work, current work, ending work in play
Process costing shows us the accounting way
[Outro]
From department one to the final stage
Process costing fills the accounting page
Mass production needs this system true
Now you know what process costing can do