Questions:
1. What is a production report? What purpose does this report serve?
2. Can process costing be used for a service organization? Explain. Explain how process costing can be used for JIT manufacturing firms.
3. What are equivalent units? Why are they needed in a process-costing system?
4. How is the equivalent unit calculation affected when direct materials are added at the beginning or end of the process rather than uniformly throughout the process?
5. Describe the five steps in accounting for the manufacturing activity of a processing department, and indicate how they interrelate.