After studying this chapter, you should be able to . . .

1. Identify the types of firms or operations for which a process costing system is most suitable
2. Explain and calculate equivalent units
3. Describe the five steps in process costing
4. Demonstrate the weighted-average method of process costing
5. Demonstrate the FIFO method of process costing
6. Analyze process costing with multiple departments
7. Prepare journal entries to record the flow of costs in a process costing system
8. Explain how process costing systems are implemented and enhanced in practice
9. (Appendix) Account for spoilage in process costing