Question

Which of the following is true of a production report?

a.It does not provide information about the manufacturing costs associated with the physical units processed in a department.
b.It is used to assign overhead costs to each job performed.
c.It serves as a source document for transferring costs from the work-in-process account of a prior department to the work-in-process account of a subsequent department.
d.It is prepared only at the end of the manufacturing process.

Answer 1

The correct answer is c. A production report serves as a source document for transferring costs from the work-in-process account of a prior department to the work-in-process account of a subsequent department.

Step-by-step explanation:

The correct answer is c. A production report serves as a source document for transferring costs from the work-in-process account of a prior department to the work-in-process account of a subsequent department. It provides information about the manufacturing costs associated with the physical units processed in a department. A production report is prepared periodically, either daily or weekly, to track the progress of production in a department.