The four steps necessary to complete a cost of production report in a process cost system are
A) 2, 4, 3, 1
B) 4, 2, 3, 1
C) 2, 3, 4, 1
D) 2, 3, 1, 4
1) allocate costs to transferred and partially completed units
2) determine the units to be assigned costs
3) determine the cost per equivalent unit
4) calculate equivalent units of production
5)The correct ordering of the steps is

Question

Quizplus · Accepted Answer

The correct order of the steps is: 2, 3, 4, 1.First, the units to be assigned costs must be determined (2). Then, the cost per equivalent unit must be calculated (3). Next, the equivalent units of production must be calculated (4). Finally, the costs are allocated to transferred and partially completed units (1).

The Four Steps Necessary to Complete a Cost of Production