Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete 100,000 Pounds started into production during May 350,000 Pounds completed and transferred out ? Pounds in process, May 31; materials 80% complete; conversion 20% complete 30,000 Cost data: Work in process inventory, May 1: Materials cost $ 88,400 Conversion cost $ 22,240 Cost added during May: Materials cost $ 400,000 Conversion cost $ 80,000

Prepare a T-account for the WIP account for the Cleaning Department. Short answer questions. Answer the following questions in your own words. Feel free to look them up in the book but please re-word them in your own words to show you understand what you are saying I advise against googling answers for this class because not all internet answers are in the same format or use the same terminology as your author, and that is why I suggest you look them up in your text or listen for the answers in the lecture videos. Always answer these types of questions in complete sentences and paragraphs.

1. What is the main factor for a company in choosing between job order and process costing? Describe two likely businesses that would use job order costing and two likely businesses that would use process costing.

2. Explain in very simple terms the notion of equivalent units of production (EUP). Why is it necessary to use EUP in process costing?