Match each phrase that follows with the term a-h it describes.
-conversion costs
A)direct labor and factory overhead
B)direct labor and direct materials
C)transferred in costs
D)equivalent units
E)process costing
F)job order costing
G)first-in, first-out method
H)cost of production report

Question

Quizplus · Accepted Answer

Conversion costs refer to the direct labor and factory overhead costs incurred to convert raw materials into finished goods.

Answer: B
 Direct labor and direct materials are the two components of prime costs, which are the costs directly attributable to the production of goods.

Answer: C
 Transferred in costs refer to the costs of partially completed units that are transferred from one department to another in the production process.

Answer: D
 Equivalent units are a measure of production that takes into account partially completed units and adjusts for differences in the level of completion.

Answer: E
 Process costing is a method of cost accounting used to track the costs associated with producing products on a large scale.

Answer: F
 Job order costing is a method of cost accounting used to track the costs associated with producing custom-made products.

Answer: G
 The first-in, first-out (FIFO) method is a method of inventory valuation that assumes the first items purchased are the first items sold.

Answer: H
 A cost of production report is a document that summarizes the costs incurred during a production run and the quantity and cost of units produced.

Match Each Phrase That Follows with the Term A-H It