1. What are the concepts underlying a process costing system? How might a company identify and group activities into a particular process?

2. What information is contained in a production report? What are equivalent units and how would a company calculate them? How does the production report and equivalent units relate to unit costs? 3. Inventory in each process can be accounted for using first-in-first-out (FIFO) or weighted average costing methods. Why would a company choose to use FIFO costing? Why would a company choose to use weighted average costing?