Question

Of the following process costing steps, which must be done last? A. Compute the equivalent units of production.B. Compute the costs per equivalent unit of production.C. Measure the physical flow of resources.D. Identify the product costs to account for.

Answer 1

Answer: The correct option is B. Compute the costs per equivalent unit of production is the step that must be taken at the end of the costing process.

Explanation: In order to calculate the cost per unit, we must know the costs and the equivalent units first.