The batch method of product costing is applicable to

The batch method of product costing applies to single-piece, small-lot production enterprises, such as shipbuilding, heavy machinery manufacturing, precision instrument manufacturing, but also can be used in general enterprises in the production of new products trial or experimental, construction in progress, and equipment repair operations.

Batch method, refers to the product of the batch as the product costing object, the collection and distribution of production costs, a method of calculating product costs. Calculation procedures are as follows:

1, the accounting department according to the product batch or order to open the product costing sheet, set up columns in the calculation sheet according to the specified cost items, pooling the production costs incurred.

2, when the costs are incurred, based on the relevant original documents and other information, the preparation of a variety of cost allocation table, cost allocation. For directly incurred material costs and salary costs, directly into the costing of various products in the "direct material" and "direct salary" items, the manufacturing costs should be first centralized in the "Manufacturing Expense Ledger "

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3, at the end of the month, the manufacturing costs will be pooled in the "manufacturing overhead ledger", using the monthly allocation method or cumulative allocation method to allocate, respectively, to the various product costing sheets in the "manufacturing overhead" items.

4, at the end of the month, for the completed products, should use the appropriate method to calculate the cost of completed products and the cost of products at the end of the month.