ECONOMICS

Detailed explanation-1: -Discrete production losses are assumed to occur at the specific point in production process and it will be detected only when the firm performed a quality control inspection.

Detailed explanation-2: -o It assumes that the units in beginning work in process inventory and the units started into production during the period are equally likely to be completed during the period. o All units completed during the current period are assigned costs based on the weighted average cost per unit.

Detailed explanation-3: -The correct answer is b. A process cost system has one work in process account for each department. Process cost system has multiple departments or processes, so its work in process inventory account has the same number of processes or departments in order to accumulate the product costs incurred for each process.

Detailed explanation-4: -Which of the following does not occur with process costing? The equivalent units transferred out cannot exceed the equivalent units of work done in the period.