Once the physical units have been summarized:
A) Costs are allocated to all of the work done this period
B) The cost report is complete
C) Equivalent units need to be summarized
D) Costs are allocated only to ending WIP inventories

Question

Quizplus · Accepted Answer

After summarizing the physical units, the next step is to summarize the equivalent units. This is necessary in order to allocate costs correctly and accurately, as each unit may not have undergone the same amount of work or production processes. Costs are then allocated to the equivalent units, rather than just the ending WIP inventories. The cost report is only complete once all necessary steps, including summarizing the equivalent units, have been completed.

Once the Physical Units Have Been Summarized