What are the concepts underlying a process costing system

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Q1. What are the concepts underlying a process costing system? How might a company identify and group activities into a particular process?

Q2. What information is contained in a production report? What are equivalent units and how would a company calculate them? How does the production report and equivalent units relate to unit costs?

Q3. Inventory in each process can be accounted for using first-in first-out (FIFO) or weighted average costing methods. Why would a company choose to use FIFO costing? Why would a company choose to use weighted average costing?

Reference no: EM132815278

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