The first step in process costing is to calculate the cost of goods transferred during the accounting period.

Question

Quizplus · Accepted Answer

The first step in process costing is actually to calculate the cost per equivalent unit for direct materials, direct labor, and manufacturing overhead. Once this is determined, the cost of goods transferred can then be calculated using the number of equivalent units transferred from one process to another.

The First Step in Process Costing Is to Calculate the Cost