The end of the month report for a process costing system which facilitates the determination of the ending Work in Process inventory to be reported on the balance sheet is called a(n)
A)inventory control report.
B)production cost report.
C)equivalent unit report.
D)cost summary report.

Question

Quizplus · Accepted Answer

The production cost report summarizes the production and cost data for a specific period and provides information on the cost of goods manufactured and the cost of goods sold. It also calculates the amount of ending Work in Process inventory to be reported on the balance sheet. The other options, such as the inventory control report and the cost summary report, may provide information on inventory levels and costs, but do not specifically facilitate the determination of ending Work in Process inventory. The equivalent unit report provides information on the amount of completed and partially completed units, but does not directly tie into the ending Work in Process inventory.

The End of the Month Report for a Process Costing