ECONOMICS

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COST ACCOUNTING

PROCESS COSTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In process cost accounting, manufacturing costs are summarized on a ____
A
job order cost sheet.
B
process order cost sheet.
C
production cost report.
D
manufacturing cost sheet.
Explanation: 

Detailed explanation-1: -The answer is: c) after unit is produced . Process costing is used in cost accounting to collect and assign manufacturing costs to the units being produced.

Detailed explanation-2: -The production cost report. summarizes the production and cost activity within a department for a reporting period. It is simply a formal summary of the four steps performed to assign costs to units transferred out and units in ending work-in-process (WIP) inventory.

Detailed explanation-3: -Job cost sheet. This is the correct answer.

Detailed explanation-4: -A production cost report identifies the total cost (direct materials, labor, and overhead), of producing a product. A production cost report helps managers answer several important questions: How much does it cost to produce each unit of product for each department?

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