Question

Which of the following are steps in process costing? Select one: A. Visualize the physical flow of units B. Calculate the equivalent units C. Determine the per-unit costs D. Calculate the Cost of Goods Manufactured and the Ending WIP Inventory E. All of the above

Answer 1

Answer: E. All of the above

Step-by-step explanation:

In process costing, all of the above are used. Process costing is used for the production of goods that a re homogenous so the cost is the same for all the goods.

First one must visualize the flow of the goods to see the costs they incur at each stage. The equivalent units should then be calculated as this would show the number of units that the cost is being assigned to. Next is to divide the costs incurred by the equivalent units to find the cost per unit. Then calculate the cost of goods manufactured based on the manufactured and ending inventory