ECONOMICS

Detailed explanation-1: -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-2: -Cost Analysis The final stage of process costing is analyzing the total cost of the process costing system. Companies often review each production process to ensure all costs or properly allocated to each the equivalent unit.

Detailed explanation-3: -Process costing requires partially completed units in ending work-in-process inventory to be converted to the equivalent completed units (called equivalent units). Equivalent units. are calculated by multiplying the number of physical (or actual) units on hand by the percentage of completion of the units.