Unit 3 Study Guide Chapter 3 Topic - Process Costing Use this lecture outline/guide to add notes from your reading under each topic. Include references to examples, exercises and problems that illustrate the concept. 1. What is process costing? 2. When is it appropriate to use process costing? 3. How does process costing differ from job order costing? 4. List 3 examples of products or services where process costing would be a logical choice for the product or service and explain why. 5. Unit 2 introduced the concept of a predetermined overhead rate. Describe how the predetermined overhead rate is used in assigning manufacturing overhead in process costing. 6. List the two categories of process costing that make up conversion costs. 7. Process costing utilizes the concept of equivalent units. Define equivalent unit. 8. How are equivalent units calculated? Give an example. (Add one from the Chapter or make up your own.) 9. Are equivalent units necessarily the same for direct materials and conversion costs? Explain why or why not. 10. Explain how equivalent units to compute per unit costs. Provide a numerical example