ECONOMICS

Detailed explanation-1: -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-2: -Step 1: Summarize the flow of physical units The flow of physical units is classified as the First-in-first-out, last-in-first-out or weighted average. The company is required to summarize the flow of physical unit while determining the costing of material used in production.

Detailed explanation-3: -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?

Detailed explanation-4: -Answer and Explanation: The correct answer is c) physical units accounted for equals the units to be accounted for. When preparing the production cost report, the total physical units of the inventory by the company equates to the units accounted for.