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?
Your essay must include an introduction, body, and conclusion, and address all relevant parts of each question. Your response should be a minimum of 300 words in length. Make sure to cite any references you use. Proper citation format for a reference includes the name of the author(s), the title of the work, the date of the publication, and the page number.
“PLEASE” no plagiarism.