A Simple Teaching Approach for Process Costing Using Logic and Pictures.

Abstract This article presents an approach to teaching process costing that is different than the one found in most textbooks. The approach offered here does not emphasize preparing production reports. The emphasis is on using one equation to understand the logic behind process costing. The equation has already been extensively used in prior accounting classes. A simple picture is also presented to help organize the major calculations in a logical order corresponding to the equation. The approach offered here can be used for the basics of process costing as well as for the complexities in dealing with lost units.