Question

The process cost summary is prepared for the following reasons. (Check all that apply.) Multiple select question. To determine the cost of individual jobs To help department managers control costs To help factory managers evaluate department managers' performances To provide cost information for financial statements To determine the ending balance of the three inventory accounts

Answer 1

The process cost summary is prepared for the following reasons:

To help department managers control costs

To help factory managers evaluate department managers' performances

To provide cost information for financial statements

Step-by-step explanation:

Processing costing is used when production involves a series of sequential processes with high level of standardization. In such a production environment, the products are produced in batches, with the prime costs tracked to the department or production batch instead of to individual products or jobs.