allocate separable costs
allocate joint costs
compute gross margin
assign total cost to completed units
Answer is Wrong!
Answer is Right!
The correct answer is: D. assign total cost to completed units
In process costing, the fifth step is to assign total cost to completed units. This is done by multiplying the number of units completed by the average cost per unit. The average cost per unit is calculated by dividing the total cost of the units completed by the number of units completed.
The other options are incorrect because:
- Option A is incorrect because separable costs are allocated in the fourth step of process costing.
- Option B is incorrect because joint costs are allocated in the third step of process costing.
- Option C is incorrect because gross margin is calculated in the sixth step of process costing.