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 include direct labor and factory overhead, which are the costs incurred to convert raw materials into finished goods.

E) Process costing
 Conversion costs are typically used in process costing systems, where the focus is on the cost of each stage of production rather than on individual jobs.

D) Equivalent units
 Conversion costs are used to calculate equivalent units, which measure the amount of completed output that could have been produced based on the resources used during the period.

H) Cost of production report
 Conversion costs are reported on the cost of production report, which summarizes the costs incurred during the period and the status of work in process inventory.

Answer: A, E, D, H

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