ECONOMICS

Detailed explanation-1: -The four key steps of assigning costs to units transferred out and units in ending WIP inventory are formally presented in a production cost report. The production cost report summarizes the production and cost activity within a processing department for a reporting period.

Detailed explanation-2: -Note: Step 3 in preparing the cost of production report is determine the cost per equivalent unit.

Detailed explanation-3: -The three general categories of costs included in manufacturing processes are direct materials, direct labor, and overhead.

Detailed explanation-4: -A production cost report identifies the total cost (direct materials, labor, and overhead), of producing a product.