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}Batch costing is also a form of specificorder costing.
}It is suitable for a business that produces batches of identical units, but each batch is for different units.
}For example, a clothing manufacturer may have a production run for a batch of men’s white shirts of collar size 16 inches. It may then have a production run for a batch of men’s trousers with awaist size of 34 inches.
}Each batch of production will have different costs but each unit within the batch should have the same cost.
}The total cost of the batch of productionis calculated and divided by the number of units in that batch to find the cost per unit for that batch of production.
Cost per unit in batch = Total production cost of batch/Number of units in patch
}The selling prices of batches are calculated in the same ways as the selling prices of jobs.
}I.e. By adding a profit to the cost
