The four measures essential to complete a price of manufacturing report ina process cost system are

1. alsituate prices to moved and partiallycompleted units2. determine the systems to be assigned costs3. recognize the cost per indistinguishable unit4. calculate identical units of production

The correct ordering of the procedures is4, 2, 3, 12, 3, 4, 12, 3, 1, 42, 4, 3, 1

Part 2

Mocha Company manufactures a single product by a continuousprocedure, including three manufacturing departments. The recordsshow that straight products, direct labor, and also applied factoryoverhead for Department 1 were $100,000, $125,000, and also $150,000,respectively. The documents additionally suggest that straight products,direct labor, and also applied factory overhead for Department 2 were$55,000, $65,000, and also $80,000, respectively. In enhancement, occupational inprocess at the start of the duration for Department 1 totaled$75,000, and work in process at the finish of the duration totaled$60,000.

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The journal enattempt to record the circulation of expenses right into Department 1throughout the period for straight materials isa. Work in Process—Department 1 55,000Materials 55,000b. Materials 100,000Work in Process—Department 1 100,000c. Work in Process—Department 1 100,000Materials 100,000d. Materials 55,000Work in Process—Department 1 55,000

Part 3

The two categories of cost making up convariation prices arestraight labor and also instraight labordirect labor and also factory overheadmanufacturing facility overhead and direct materialsdirect labor and direct materials


General guidance

Concepts and reason
Conversion Cost: The price related to the conversion of raw materials right into finished items is called convariation expense. It requires direct labor and other overhead expenses which are necessary to turn the raw material into a finimelted great.

Journal Entries: This is the initially action in the bookkeeping cycle. After knowledge and also analyzing the transactions, transactions having actually a financial affect are videotaped in publications of accounts by adhering to debit crmodify rules.

Direct labor: Workers or employees straight associated in the manufacture of items and also services are called direct labor. In other words, the price of the employees which is straight connected in the transformation of the raw material right into the finished product. 

Inventory: It is goods of the company which deserve to be in creates of raw material, work-related in progression and finiburned products. The firm held these goods for sale in the ordinary course of business it shows the capcapacity of the firm to made goods in what quantity it is proved in the asset side of the balance sheet.

Work in progress: This is that component of the inventory on which some work has actually been in done in regards to product and also convariation price yet they are not completely manufactured and also therefore remains in stock and are transferred to following accountancy duration.

Direct materials: These are the materials which are supplied in the Production process which constitutes an integral percent of the final product, the price of which is identifiable and also traceable directly to it. The expense of straight product can be directly chargeable to the final product as compared to the indirect material.

Delittle bit Crmodify Rule: Delittle Credit dominion is defined below.

1. Delittle bit what comes in and also Credit what goes out – applicable for real accounts choose structure, plant, and machinery, and so on.

2. Debit the receiver and also Crmodify the giver – applicable for personal accounts like funding accounts, drawings account of owners, partners, and so on.

3. Delittle bit all costs and also losses and also Crmodify all incomes and gains – applicable for nominal accounts like interemainder got, rent phelp, and so on.


The correct order of action to complete a expense of manufacturing report is determining the devices to be assigned prices, calculate equivalent devices of productions, determining the cost per indistinguishable systems and also alfind cost to different systems.

Part 1

The correct order of step to complete a price of production report is determining the systems to be assigned costs, calculate identical systems of productions, determining the cost per equivalent systems and also alfind price to various devices.

The four procedures are essential to complete a expense of production report initially identify the units which have to assigned expense. Then the equivalent devices of production are calculated based on the assigned expenses.

The 3rd step is determining the price per identical systems and also the fourth is asauthorize costs to units transferred and also partly completed systems. Hence, these 4 steps are essential for product report in a price system

Use the information concerning straight product, pass the crucial journal enattempt to record the transactions.

Tip 2 of 3


Part 2

Direct material is offered in making the product so the account work in procedure is boosted. In instance of increase in the asset of the agency the pertinent ascollection account is debited. Hence, the account is debited via $100,000

Due to an increase in work-related in procedure the material is lessened. In case of a decrease in the ascollection of the firm the pertinent ascollection account is attributed. Hence, the account is credited via $100,000.


Conversion costs are provided in expense audit that explains the connection in between straight labor and factory overhead prices. In easy terms, conversion costs are the manufacturing expenses that transform raw material right into finished products.

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Convariation expenses comprise of manufacturing facility overhead and also straight labor expense that converts raw product right into finimelted products. Overhead costs are defined as an expense that does not necessarily contribute to the manufacturing procedure however is mandatory for various other operations. Hence, straight labor and also manufacturing facility overhead develop convariation prices.

Part 1

The correct order of action to complete a expense of production report is determining the devices to be assigned expenses, calculate identical units of productions, determining the expense per indistinguishable devices and allocate price to different units.