ECONOMICS

Detailed explanation-1: -The first step performed in preparing a production cost report is computing the equivalent units of production. When equivalent units of production are different for materials and conversion costs, unit costs are computed for materials, conversion, and total manufacturing.

Detailed explanation-2: -(Enumerated in the Cost of Production Report) 1: Determine the units to be assigned costs. 2: Calculate equivalent units of production. 3: Determine the cost per equivalent unit. 4: Allocate costs to transferred and partially completed units.

Detailed explanation-3: -Identify the correct order of the four steps used to prepare a production cost summary (report). (1)Summarize the flow of physical units; (2) Compute the equivalent units of production output; (3) Compute the cost per equivalent unit of production; and (4) Assign costs to units completed and units in process.

Detailed explanation-4: -Note: Step 3 in preparing the cost of production report is determine the cost per equivalent unit.