In preparing the production report, which of the following sequences are correct? a. Calculate the cost per equivalent unit > Prepare a production report > Reconcile the number of physical units worked on during the period. B.Reconcile the number of physical units worked on during the period > Translate physical units into equivalent units > Calculate the cost per equivalent unit. c. Translate physical units into equivalent units > Reconcile the total cost of Work In Process > Reconcile the number of physical units worked on during the period. d. Reconcile the number of physical units worked on during the period > Reconcile the total cost of Work In Process inventory > Calculate the cost per equivalent unit
B.Reconcile the number of physical units worked on during the period > Translate physical units into equivalent units > Calculate the cost per equivalent unit.
The correct sequence in preparing the production report is:
b. Reconcile the number of physical units worked on during the period > Translate physical units into equivalent units > Calculate the cost per equivalent unit.
Explanation:
The first step in preparing the production report is to reconcile the number of physical units worked on during the period. This involves comparing the number of units that were started and completed during the period to the number of units that were in process at the beginning and end of the period.
The next step is to translate physical units into equivalent units. This is necessary when there are partially completed units in the production process that need to be accounted for in the report.
Finally, the cost per equivalent unit is calculated by dividing the total cost of the production process (including beginning Work In Process inventory, direct materials, direct labor, and manufacturing overhead) by the total equivalent units produced.
Therefore, option B is the correct sequence in preparing the production report.
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