Assignment: Process costing

summary
(Unilever Dove product
reflection)
(Managerial Accounting)
Submitted to: Sir Ameet Kumar
Submitted by: Aamir Ali (BBA-VI A)

Dove soap by unilever goes through three processes, animal fat is dissolved in water means
splitting then it is mixed properly by another department then comes the cooling and finishing
process. Unilever is engaged in process costing because it occurs different costs associated
with different labor, material used in making dove. It is produced on continuous basis.
It flows from every department and computed costs. Sometimes unilever production of dove in a
process is partially completed therefore it uses equivalent units to compute the output product
cost. Therefore, it uses weighted-average method for all the departments involved in
manufacturing. Under this system specifically costs are being calculated for each category of
processes. It multiplies the percentage of completion with number of partially completed work
while this is further used to value the ending work in process inventory transferred out to
finished product (dove).
Operating costs for unilever can be sunsilk for it specialized for individual characters as well as
common people. Other examples can be clothes and Nike shoes.
So, the continuous costs associated with the production process from one department to other
until it finalized for same product is called process costing.