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Production cost report

A production cost report is the key document management uses to understand the activities in a department; it shows the production quantity and cost data related to that department.

In order to complete a production cost report, the company must perform four steps, which as a whole, make up the process costing system.

  1. Compute the physical unit flow.
  2. Compute the equivalent units of production.
  3. Compute unit production costs.
  4. Prepare a cost reconciliation schedule.
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