1. Under what conditions is it appropriate to use a process costing system?

2. In what ways are job-order and process costing different?

3. Why is cost accumulation easier in a process costing system than it is in a job-order costing system?

4. How many Work in Process accounts are maintained in a company that uses process costing?

5. Assume that a company has two processing departments-Mixing and Firing. Prepare a journal entry to show a transfer of partially completed units from the Mixing Department to the Firing Department.

6. Assume that a company has two processing departments-Mixing followed by Firing. Explain what costs might be added to the Firing Department's Work in Process account during a period.

7. What is meant by the term equivalent units of production when the weighted-average method is used?

8. "The increasing use of flexible manufacturing systems will result in a reduction in the importance of process costing over time." Do you agree or disagree and why?

9. If FIFO is a more accurate costing method, why would a manager choose to use the weighted-average method instead? List at least three reasons.