Match each phrase that follows with the term a-h it describes.
-summary of the activity in a processing department for a specific period
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

A cost of production report provides a summary of the activity in a processing department for a specific period.

Answer: E
 Process costing is a method used to determine the cost of producing identical or similar units of product, such as in a processing department.

Answer: D
 Equivalent units are used in process costing to account for partially completed units, and are calculated based on the number of units that are fully complete plus the percentage of completion for partially completed units.

Answer: A
 Direct labor and factory overhead are two of the key cost components that are included in process costing, as they are often incurred in a processing department.

Answer: C
 Transferred in costs refer to the costs of goods that have been partially completed in one processing department and are then transferred to another processing department.

The remaining choices, B, F, and G, do not describe the summary of activity in a processing department for a specific period.

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