(AICPA) Presented below are three independent questions about a typical manufacturing company that uses a process cost accounting system. Your response to each question should be complete, including simple examples or illustrations where appropriate.

a. Explain the rationale supporting the use of process costing instead of job order costing for product costing purposes.

b. Define equivalent production (equivalent units produced). Explain the significance and use of equivalent production for product costing purposes.

c. Explain how the first in, first out (EIEO) method of process costing differs from the weighted average method of process costing.