Question

Match each phrase that follows with the term (a–h) it describes.

Answer 1

Answer:

1. G

2. D

3. A

4. H

5. E

6. B

7. C

8. F

Explanation:

1. First-in, first-out method: A process costing method that costs each period’s equivalent units of work with that period’s costs per equivalent unit

2. Equivalent units: Measure of the work done during a production period, expressed in terms of fully complete units of output

3. Direct labor and factory overhead: Conversion costs

4. Cost of production report: Summary of the activity in a processing department for a specific period

5. Process costing: Costing system used by a company producing computer chips

6. Direct labor and direct materials: Prime costs

7. Transferred-in costs: Costs incurred in a previous process that are carried forward as part of the product’s cost when it moves to the next department

8. Job order costing: Costing system used by a company producing custom window treatments.