What is a process cost worksheet in accounting?
In accounting, process costing refers to calculating the cost of identical products that are produced in a continuous process. A process cost worksheet tallies the product cost per unit.Direct MaterialsThe process cost worksheet lists each of the direct materials required per unit. This is tallied by determining the total quantity of materials per batch and dividing it by the number of units produced in a batch.Direct LaborThe process cost worksheet lists the direct labor requirements per unit. This may consider the number of employees hours worked and a labor rate for a total labor cost. The total labor cost is then divided by the number of units produced in a batch for a labor cost per unit.Variable OverheadVariable overhead includes costs which are not direct components of the product, but costs will vary based on the number of units produced. This may include electricity costs, repairs and maintenance, and miscellaneous materials such as thread or glue, for example. These costs are
