Learning Objective 03-P1: Compute process activity costs using weighted average. In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the:

Learning Objective 03-P1: Compute process activity costs using weighted average.

Materials purchased are debited to a Raw Materials Inventory account. As direct materials are issued to processes, they are separately accumulated in a Work in Process Inventory account for that process. As indirect materials are used, their costs are debited to Factory Overhead. 

In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)



Explanation

Knowledge Check 01

In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the units completed and transferred to finished goods; units in ending work in process inventory.

 

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