This type of costing is a hybrid of both Job Order Costing and Process Costing. Costs are calculated when inventory is put through in batch orders. This normally occurs when orders are put through from one customer for a group of items with specifications.


Each department calculates its own costs. A production report summarizes all costs for all departments.


  1. Quanties
  2. Unit Costs
    • material
    • labor
    • overhead
  3. Reconcilliation of Costs