[Verse 1]
Factory floor machines humming steady beats
Identical bottles marching down the line
Raw materials pour through stations neat
Department One to Two, a grand design
Units tumble forward, never quite complete
Some finish strong while others fall behind
[Chorus]
Process costing counts the flow
W-I-P means work in progress, don't you know
Equivalent units tell the tale
Started, finished, what won't fail
Physical flows and cost per unit
When production never quits
[Verse 2]
Weighted average smooths the bumpy ride
Prior period costs blend with current batch
FIFO separates what's old from new inside
First in, first out, costs that never match
Beginning inventory can't hide
From calculations sharp and precise to catch
[Chorus]
Process costing counts the flow
W-I-P means work in progress, don't you know
Equivalent units tell the tale
Started, finished, what won't fail
Physical flows and cost per unit
When production never quits
[Bridge]
Conversion costs need special care
Labor, overhead splitting everywhere
Materials added at the start
Percentage complete, that's the art
Forty percent through Department Three
Equivalent units set us free
[Verse 3]
Cost per equivalent unit breaks it down
Total costs divided by the count
Transferred out or still in town
Every penny must account
Five-step process wears the crown
Production reports paramount
[Chorus]
Process costing counts the flow
W-I-P means work in progress, don't you know
Equivalent units tell the tale
Started, finished, what won't fail
Physical flows and cost per unit
When production never quits
[Outro]
Mass production needs this frame
Process costing plays the game
Unit by unit, stage by stage
Turn another costing page