Explain the accounting differences in process costing versus job-order costing and answer the following questions:
How are manufacturing costs accounted for in process costing?
How are labor and overhead costs applied in a process costing system?
Why is the cost per equivalent unit determined separately for direct materials and for conversion costs?
What is the reason for determining the cost per equivalent unit?
What is the most important purpose of the cost of production report?
Are there different ways of determining the cost of completed and transferred out units, and the cost of ending work in process inventory?
Additionally, provide an example of a product environment most suitable to employ a process-costing system.