ECONOMICS

Detailed explanation-1: -Unit material cost is computed by taking total material costs charged to the department for the period and dividing by the physical units in the process during the period. A production cost report is an internal document for management that shows production quantity and cost data for a particular job.

Detailed explanation-2: -Materials are added at the beginning of the process. If first-in, first-out (FIFO) process costing is used, the total equivalent units for materials will equal the number of units: transferred out during the period.

Detailed explanation-3: -An operation-costing system is a common type of hybrid-costing system that is applied to batches of similar, but not identical, products.

Detailed explanation-4: -An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period. Basically the fully completed units and the partially completed units are expressed in terms of fully completed units.

Detailed explanation-5: -Process costing is an accounting system used when identical units are produced through an ongoing series of uniform production steps. Which of the following does not occur with process costing? The equivalent units transferred out cannot exceed the equivalent units of work done in the period.