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9. A company manufacturing Vitamin C tablets for different brand labels, but in the same shape plastic bottles, would use job order costing 10. Weighted average equivalent unlts will always be equal to or higher than FIFO equivalent units. 11. The FIFO cost per unit for this perlod will always be less than or equal to the weighted average cost per unit. 12. IF units are lost through a normal process of evaporation. It is an unacceptable practice to simply divide costs by the number of equivalent units of good product;the lost units must get a separate cost 13. The New Overhead that appears in the COSTS IN (or costs to be accounted for) SECTION of a department process costing summary is usually the applied overhead rather than the full actual overhead incurred. Assuming a company has only one department and both a beginning and ending work in process inventory the "New Costs Started" portion of the Costs IN (Costs to be Accounted For) section of a process costing report should be equal to the COST OF GOODS MANUFACTURED line on the financial statements. 14. 15. The total "Cost of Goods Transferred Out" on the process costing report should be equal to the COST OF GOODS MANUFACTURED line on the financial statements if the company has only one department. Companies that feel that their over-applied factory overhead is significant would close this account out by decreasing the balance in raw materials, work in process, finished goods, and cost of goods sold 16

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