[amp_mcq option1=”summarize flow of output” option2=”compute output in units” option3=”summarize total costs” option4=”compute cost for each equivalent unit” correct=”option4″]<\/p>\n
The correct answer is: D. compute cost for each equivalent unit<\/strong><\/p>\n In process costing, the third step is to compute the cost for each equivalent unit. This is done by dividing the total costs incurred during the period by the equivalent units produced during the period. The equivalent units produced are the units that have been completed and transferred to the next department, plus the units that are still in process at the end of the period.<\/p>\n The cost per equivalent unit is used to value the units in ending inventory and to cost the units transferred to the next department.<\/p>\n The other options are incorrect because:<\/p>\n [amp_mcq option1=”summarize flow of output” option2=”compute output in units” option3=”summarize total costs” option4=”compute cost for each equivalent unit” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-57306","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n\n