COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Analyzing physical flow of production units.
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Calculating equivalent units of production.
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Determining total cost for each manufacturing element.
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Computing the cost per equivalent unit.
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Assigning cost to completed and uncompleted production.
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Detailed explanation-1: -The fifth and final step in determining process costs is: Assigning cost to completed and uncompleted production. The weighted-average method of process costing makes no distinction between the cost incurred prior to the current period and the cost incurred in: The current period.
Detailed explanation-2: -The last step of the 5-step process costing procedure is to assign total costs to units completed and to units in ending Work in Process inventory.
Detailed explanation-3: -The last step in a process-costing system is to determine the equivalent units for the period. The last step is to assign the costs incurred. The number of equivalent units must be determined before costs can be assigned.
Detailed explanation-4: -THE 5 STEPS FOR PROCESS COSTING Convert the inventory to determine the equivalent units. Identify the total costs. Calculate the average cost per equivalent unit. Allocate these costs to finished units and Work in Process units.