Question: 1. Are the journal entries that match cost flows to product flows in process costing primarily the same or much different than those in job order costing? Explain.
2. Explain in simple terms the notion of equivalent units of production (EUP). Why is it necessary to use EUP in process costing?
3. What are the two main inventory methods used in process costing? What are the differences between these methods?
4. The focus in a job order costing system is the job or batch. Identify the main focus in process costing.