Questions:
1. What is meant 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?
2. What is meant by the term transferred-out cost? Why does the transferred-out cost under the WA method include only one computation but the FIFO method includes multiple computations?
3. How is the cost of ending inventory calculated in a process costing system?
4. Which cost component can be found in a downstream department of a multidepartment production process that will not be present in the first upstream department? Discuss.