VII. Because the costs of direct labor andoverhead are often incurred ____________ throughout the productionprocess, they may, for the sake of convenience, be combined whencalculating equivalent units; these combined costs are called_____________ costs.
VIII. Cost flow in a process cost report that usesthe FIFO costing method follows the logical _____________ flow ofproductionâthat is, the costs assigned to the first materialsprocessed are the first costs transferred when those materials flowto the next process, department, or work cell.
IX. Preparation of a process cost reportusing _____________:
A. Step 1 entails computing the totalnumber of ___________ units to be accounted for during theperiod.
B. Step 2 entails computing ____________units of production for the period for direct materials andconversion costs.
C. In Step 3, all direct ___________ and____________ costs for the period and the previous period are addedto arrive at total costs.
D. In Step 4, the ___________ perequivalent unit for both direct materials and conversion costs iscomputed by dividing current period costs by their respectiveequivalent units.
E. In Step 5, costs are____________ to the units completed and transferred out during theperiod, as well as to the ending work in process inventory.
VII. Because the costs of direct labor andoverhead are often incurred ____________ throughout the productionprocess, they may, for the sake of convenience, be combined whencalculating equivalent units; these combined costs are called_____________ costs.
VIII. Cost flow in a process cost report that usesthe FIFO costing method follows the logical _____________ flow ofproductionâthat is, the costs assigned to the first materialsprocessed are the first costs transferred when those materials flowto the next process, department, or work cell.
IX. Preparation of a process cost reportusing _____________:
A. Step 1 entails computing the totalnumber of ___________ units to be accounted for during theperiod.
B. Step 2 entails computing ____________units of production for the period for direct materials andconversion costs.
C. In Step 3, all direct ___________ and____________ costs for the period and the previous period are addedto arrive at total costs.
D. In Step 4, the ___________ perequivalent unit for both direct materials and conversion costs iscomputed by dividing current period costs by their respectiveequivalent units.
E. In Step 5, costs are____________ to the units completed and transferred out during theperiod, as well as to the ending work in process inventory.
