Chapter 20, Problem 13E

To determine

Introduction:

Process costing system:

Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

Equivalent units:

Equivalent unit is the product unit that is physically not completed but it is measured as equivalent to completed unit.

FIFO method:

FIFO is one of the methods of process costing, under this method the cost and units of beginning work in process inventory are accounted separately.

To Prepare:

The Process cost summary using the FIFO method