What is the first step of process costing?
A)Summarize the flow of physical units of output.
B)Compute output in terms of equivalent units.
C)Summarize total costs to account for.
D)Compute cost per equivalent unit.
E)Assign total costs to units completed and to units in ending work in process.

Question

Quizplus · Accepted Answer

The first step of process costing is to summarize the flow of physical units of output, which involves tracking the input and output of each process in terms of physical units. This provides a basis for measuring the efficiency of each process and for allocating costs to the various stages of production.

What Is the First Step of Process Costing