Beginning inventory (30% complete as to Material B and 60% complete for conversion) Started this cycle Ending inventory (50% complete as to Material B and 80% complete for conversion) 700 units 2,000 units 500 units Beginning inventory costs: Material A Material B P14,270 5,950 5,640 Conversion Current Period costs: Material A Material B Conversion P40,000 70,000 98,100 Material A is added at the start of production, while Material B is added uniformly throughout the process.

Definition Definition Operation costing method employed to determine the value of a product at each process or stage of the production process, applicable where goods produced from a series of continuous operations or procedure. Process costing is employed by businesses that manufacture goods and where production is in repetitive inflow.