Pulo Corporation uses a weighted-average process costing system. The company has two processing departments. Production starts in the Assembly Department and is completed in the Finishing Department. The units completed and transferred out of the Assembly department during April will become the:

The correct answer is: units started in production in Finishing for April.

Explanation:

It is an analysis of the activity of the department or cost center for the period. All costs attributable to a department or cost center are presented according to the elements of the cost center. A production cost report for each department can be prepared following a four-step approach. Each step represents a separate plan and the four plans together constitute a report of the cost of production.

Step 1: Post the physical flow of units (quantity plan).

Step 2: Calculate the equivalent production units (equivalent production plan).

Step 3: Accumulate the total and unit costs that will be accounted for by department (cost plan to be accounted for).

Step 4: Assign the accumulated costs to the units transferred or still in process (cost plan accounted for).