The correct order for the steps in preparing a process costing report are: I Summarise total costs to account for.
II Calculate the cost per equivalent unit
III Account for cost of units completed and cost of ending WIP
IV Summarise total physical and equivalent units
A) I, II, III IV
B) IV, III, II, I
C) IV, I, II, III
D) I, IV, II, III

Question

Quizplus · Accepted Answer

The correct order starts with summarizing total costs to account for (I), then summarizing total physical and equivalent units (IV), followed by calculating the cost per equivalent unit (II), and finally accounting for the cost of units completed and the cost of ending work in process (WIP) (III).

The Correct Order for the Steps in Preparing a Process