Randomly Listed Below Are the Steps for Preparing a Trial

question 54

Multiple Choice

Randomly listed below are the steps for preparing a trial balance: What is the proper order of these steps?

• A) (3), (2), (4), (1)
• B) (2), (3), (4), (1)
• C) (3), (2), (1), (4)
• D) (4), (3), (2), (1)

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Definitions:

Conversion Costs

The combined cost of direct labor and manufacturing overhead, reflecting the expenses to convert raw materials into finished products.

Equivalent Units

A concept used in process costing that converts partially completed goods into a number of fully completed units for accounting purposes.

Direct Materials

Raw materials that can be directly traced to the production of goods and are a significant part of the finished product.

Conversion Costs

Expenses in manufacturing that include both labor costs and overhead costs associated with converting raw materials into finished goods.