You will create this assignment following the Assignment Detail instructions below. This assignment will be submitted in the Unit 3 - Submission Assignment 2 lesson in intellipath. Review the tutorial titled How to Submit the Intellipath Submission Assignment. Please submit your work to this weeks Intellipath Unit Submission lesson. Click the Upload button within the submission lesson to access the submission area. Click the Select File button to upload your document, and then click "OK" to finish. Assignment Details

Process costing serves two related purposes. First, it measures the cost of goods manufactured on both a total and per-unit basis. This information is used in valuing inventories and in recording the cost of goods sold. But process costing also provides management with information about the per-unit cost of performing each step in the production process. This information is useful in evaluating the efficiency of production departments and often draws attention to potential cost savings.

Milton Manufacturing uses a process costing system. Products are processed successively by Department and Department Y and are then transferred to the finished goods warehouse. Shown below is cost information for Department Y during the month of May:

The assignment for this unit will consist of two parts, in a word document of 1-2 pages, address the following questions.

1. Briefly explain the operation of process costing, including the way the unit costs of finished goods are determined.
2. Discuss how managers will use the information obtained from process costing.