Four steps are necessary in preparing a production cost report: 1.Compute output in terms of equivalent units of production
2)Assign costs to units completed and units in process
3)Summarize the flow of physical units
4)Compute the cost per equivalent unit of production
Place these steps in the correct order.
A) 1, 3, 2, 4
B) 3, 1, 4, 2
C) 2, 1, 4, 3
D) 4, 2, 1, 3

Question

Quizplus · Accepted Answer

The correct order of preparing a production cost report is:
1) Summarize the flow of physical units
2) Compute output in terms of equivalent units of production
3) Assign costs to units completed and units in process
4) Compute the cost per equivalent unit of production
Option B presents the correct order.

Four Steps Are Necessary in Preparing a Production Cost Report