Unformatted text preview: environment uses a cost allocation report . Process costing would be logically suited to a manufacturer of barbed wire fencing material. An item is not considered in the equivalent units calculations until it is a finished good. Factory overhead is not applied in a process costing environment. It would be logical to maintain a separate Work in Process ledger account for each department. The balance sheet of a business that uses process costing methods would include work in process and finished goods, but not raw materials inventory. Process costing can be applied on a weighted-average or FIFO basis....
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- Spring '11
- Accounting, Supply chain management terms, Barbed wire, false statements