Diane Barone was a good friend of yours in high school and is from your home town. While you

chose to major in accounting when you both went away to college, she majored in marketing and

management. You have recently been promoted to accounting manager for the Snack Foods

Division of Melton Enterprises, and your friend was promoted to regional sales manager for the

same division of Melton. Diane recently telephoned you. She explained that she was familiar with

job cost sheets, which had been used by the Special Projects division where she had formerly

worked. She was, however, very uncomfortable with the production cost reports prepared by your

division. She emailed you a list of her particular questions:

1. Since Melton occasionally prepares snack foods for special orders in the Snack Foods Division,

why don't we track costs of the orders separately?

2. What is an equivalent unit?

3. Why am I getting four production cost reports? Isn't there one Work in Process account?