Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced. There are some statements about the process costing:

1. The normal loss in a process is allocated a cost in order to reconcile the costs of inputs and outputs.

2. The FIFO method assumes opening WIP is the first group of units to be completed. Therefore, opening WIP is charged separately to completed production and CPU is based on current period costs.

Required: Please identify which of the above statements are false and explain the reasons.