Unit Costs in a Process-Costing System Are Derived by Using

question 45

Multiple Choice

Unit costs in a process-costing system are derived by using:

• A)in-process units.
• B)completed units.
• C)physical units.
• D)equivalent units.
• E)a measure of activity other than those listed abovE.

---

Definitions:

Ending Work in Process

The value of goods that are in the process of being manufactured but are not yet complete at the end of an accounting period.

Materials

Refers to the raw inputs, supplies, or components used in the manufacturing or production process to create finished goods.

Unit Conversion Cost

The cost incurred to transform raw materials into finished goods on a per unit basis, including both direct labor costs and manufacturing overhead.

Materials Cost

The total expense incurred for materials that are used in the production of goods or services.