The four steps necessary to complete a cost of production report in a process cost system are 1. allocate costs to transferred a
nd partially completed units 2. determine the units to be assigned costs 3. determine the cost per equivalent unit 4. calculate equivalent units of production the correct ordering of the steps is 2, 3, 4, 1 2, 4, 3, 1 4, 2, 3, 1 2, 3, 1, 4
<span>The
1st step in making a cost of production report is to determine the
units to be assigned with costs. Next would be to calculate the total units of
production. After that, we can determine the cost per equivalent unit by simply
dividing the total cost with the total units produced. Finally, allocate some costs
to units which are already completed and transferred to other department.</span>