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

Question

Quizplus · Accepted Answer

The correct sequence for completing a cost of production report in a process cost system starts with determining the units to be assigned costs (2), then computing equivalent units of production (4), followed by determining the cost per equivalent unit (3), and finally allocating costs to units transferred out and to partially completed units (1).

The Four Steps Necessary to Complete a Cost of Production