1. How to the weighted average and first-in, First-out methods of process costing differ in their treatment of beginning work in process inventory units?
2. What is and " equivalent unit of production" and why is it a necessary concept to employ in a process costing system
3. Is one equivalent unit computation sufficient for all cost components? Explain?
4. What is mean by the phrase units started and completed? Why is this phrase more closely associated with the first-in first-out method of process costing than with the weighted average method?
What is meant by the phrase transferred out cost? Why does the transferred out cost under the WA method include on one computation, but the FIFO method includes multiple computations.