The Five Steps of the Process Costing Procedure Are Scrambled

question 11

Multiple Choice

The five steps of the process costing procedure are scrambled below: 1. Assign total costs to units completed and to units in ending WIP Inventory.
2) Summarize total costs to account for.
3) Compute the cost per equivalent unit.
4) Summarize the flow of physical units.
5) Compute output in terms of equivalent units.
The correct order for these steps is:

• A)3, 1, 4, 2, 5.
• B)5, 3, 1, 4, 2.
• C)2, 4, 5, 1, 3.
• D)4, 5, 2, 3, 1.

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Definitions:

Return on Sales

A financial ratio that calculates a company's net income relative to its revenue, showing how efficiently it converts sales into profits.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales revenue.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of a company.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.