The four steps necessary to complete a cost of production report in a process cost system are
1)
Allocate costs to transferred and partially completed units
2)
Determine the units to be assigned costs
3)
Determine the cost per equivalent unit
4)
Calculate 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

The four steps necessary to complete a cost of production report in a process cost system are ​
1)
Allocate costs to transferred and partially completed units
2)
Determine the units to be assigned costs
3)
Determine the cost per equivalent unit
4)
Calculate 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

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 calculating equivalent units of production (4), followed by determining the cost per equivalent unit (3), and finally allocating costs to transferred and partially completed units (1).

The Four Steps Necessary to Complete a Cost of Production