Process Costing

Question 1

When is process costing used?

Answer 1

to accumulate costs of mass-produced, continuous, identical items that are often small and inexpensive

Question 2

What is included in the calc of weighted average equivalent units?

Answer 2

units started and finished (sometimes have to work backwards to find) and ending inventory

Question 3

How are by products net proceeds handled?

Answer 3

no revenue is recognized from the sale of by-products, instead they are used to reduce the cost of the main product (or it is recognized as misc rev)