Question

A form prepared periodically for each processing department summarizing the units for which the department is accountable and the units to be assigned costs and the costs charged to the department and the allocation of these costs is termed a _________.A. factory overhead production report B. cost of production report C. manufacturing cost report D. process cost report

Answer 1

Answer:

Cost of production report

Explanation:

Cost of production report can be defined as a summary of the amount of data that is produced and the huge debt that has been accumulated by each producing department. It also functions as a source document which is required for passing accounting entries at the end of a costing period.

Cost of production report determines the periodic total as well as the unit costs.

A cost of production report shows the:

1) Materials and labor used in the producing department.

2) Unit cost incurred by the department.

3) Overall costs and unit costs incurred by the department at the end of the operation.

4) The amount of costs moved to a completed product storage place.

5) Total unit costs derived from the previous department.