St. Onge, Inc. uses a process-costing system. A newly-hired accountant identified the following procedures that must be performed by the close of business on Friday:
1-Calculation of equivalent units
2-Analysis of physical flows of units
3-Assignment of costs to completed units and units still in process
4-Calculation of unit costs
Which of the following choices correctly expresses the proper order of the preceding tasks?
A) 1, 2, 3, 4.
B) 1, 2, 4, 3.
C) 1, 4, 3, 2.
D) 2, 1, 4, 3.
E) 2, 1, 3, 4.

Question

Quizplus · Accepted Answer

The correct sequence for process costing involves first analyzing the physical flow of units to understand the production process (2), then calculating equivalent units to account for partial completions (1), followed by calculating unit costs based on the equivalent units (4), and finally assigning those costs to completed units and units still in process (3).

St Onge, Inc