Costs of production are applied by process costing to products on the basis of the process they underwent in the process of manufacturing. Materials, labor, and overhead in a standard amount are held by each process (Blocher, Cokins, Stout & Juras, 2019). Applications of these are made to each batch in order for the individual processes of manufacturing to run. There is the use of reconciliations after processing of batch to make sure that the application of all appropriate costs is made to the goods manufactured (Horngren, 1967).