Asked by mykeria adkins on May 27, 2024
Verified
Measure of the work done during a production period, expressed in terms of fully complete units of output
A) Direct labor and factory overhead
B) Direct labor and direct materials
C) Transferred-in costs
D) Equivalent units
E) Process costing
F) Job order costing
G) First-in, first-out method
H) Cost of production report
Equivalent Units
A concept used in process costing that converts partially completed goods into a number of complete units of output.
Cost Of Production Report
A document that details the total cost and production information for a specific period, often used in process costing systems.
Direct Labor
The term refers to the employees and labor cost directly associated with the manufacturing of goods, which includes workers who use the raw materials to build the product.
- Identify the role and calculation of equivalent units of production in process costing.
Verified Answer
Answer: E
Process costing is a costing method used to determine the cost of producing a product or service when identical or similar products are mass-produced.
Answer: H
The cost of production report is a document used in process costing that summarizes the total costs of a production period, including direct materials, direct labor, and factory overhead. It also calculates the cost per equivalent unit and the ending inventory valuation.
(Note: The other options are also relevant concepts in cost accounting, but do not directly match the given description.)
Learning Objectives
- Identify the role and calculation of equivalent units of production in process costing.
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