The five steps of the process costing procedure are scrambled below: 1. Assign total costs to units completed and to units in ending WIP inventory.
2) Summarize total costs to account for.
3) Compute the cost per equivalent unit.
4) Summarize the flow of physical units.
5) Compute output in terms of equivalent units.
The correct order for these steps is

Question

Quizplus · Accepted Answer

The correct sequence for process costing starts with summarizing the flow of physical units (4), then computing output in terms of equivalent units (5), summarizing total costs to account for (2), computing the cost per equivalent unit (3), and finally assigning total costs to units completed and to units in ending work in process (WIP) inventory (1).

The Five Steps of the Process Costing Procedure Are Scrambled