Steps in the Accounting Cycle Include (1)prepare Financial Statements, (2)post

question 114

Multiple Choice

Steps in the accounting cycle include (1) prepare financial statements, (2) post each journal entry to the appropriate ledger account,and (3) journalize transactions.Which of the following reflects the correct order of these steps?

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

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Definitions:

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the expenses necessary to convert raw materials into finished goods.

Materials Cost

The cost of materials that are used in the production of goods; a component of the total cost of goods sold.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and cost of goods sold based on the average cost of all goods available for sale during the period.

Conversion Costs

Combined costs of direct labor and manufacturing overhead, representing the costs to convert raw materials into finished goods.