8 The formula for the costs divided by an estimated activ rotal manufacturing costs for a poriod consists of the costs of direct materials used st of direct labor incurred, and the manufacturing overhead applied during the 20. Overapplied overtoad means that actual 'manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs. 21. Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature. 22. A company that produces motion pictures would likely use a process cost system. 23. In a pro ess cost system, costs are tracked through a series of connected manufacturing processes or departments, rather than by individual jobs. 24o Separate work in process accounts are maintained for each production department 25produc Equivalent units of production are used to determine the cost per unit of completed 26, The weighted-average method of computing equivalent units is the most widely used method in practice. There are no units in process at the beginning of the period, 1,000 units in process at the end of the period that are 40% complete, and 10,000 units transferred out during the period. Based on this information, there were 9,600 equivalent units of production during the period. 8.- Equivalent units of production must be calculated before the unit production costs can be computed. Unit material cost is computed by taking total material costs charged to the department for the period and dividing by the physical units in the process during the period Just-in-time strives to eliminate inventories by using a pull approach. Intracompany comparisons of the same financial statement items can often detect changes in financial relationships and significant trends. Analysis of financial statements is enhances with the use of comparative data