The first step in the process costing system is to compute the number of equivalent units produced.

Question

Quizplus · Accepted Answer

The first step in the process costing system is to accumulate the total costs of production for a given period, not to compute the number of equivalent units produced. Computing the equivalent units is a subsequent step, necessary for allocating those accumulated costs to units completed and units in process.

The First Step in the Process Costing System Is to Compute