Like products that are mass produced should be accounted for using process costing techniques to assign costs to products. Costs are accumulated by departments or cost centers rather than by jobs, work-in-process is stated in terms of equivalent units, and unit costs are established on a departmental basis. Process costing is an averaging process that calculates the average cost of all units.

The machine's net carrying amount at January 1, Year 5, is US $6,000$10,000 cost $4,000 accumulated depreciation for4 years). A change in accounting estimate is applied prospectively. Thus, 'depreciation expense is US $2,000 per year for the next 3 years.

Whole-life costs include after-purchase costs operating, support, repair, and disposal) incurred by customers as well as life-cycle costs R&D, design, manufacturing, marketing, distribution, and research). Hence, the budgeted unit whole-life cost is US $36 [($2,000,000
+ $3,000,000 + $1,200,000 + $1,000,000) - 200,000 units], and the budgeted unit selling price is US $45 $36 125CYo).