Memo

To: Mary Mahr From: CC: Production Department Date: March 13, 2012 Re: Production Cost Report A Production Cost Report can be very confusing. It is an internal report for managers to look at. It shows the production quantity and cost data for our production department. There are four steps that are needed to prepare this report. The first step is to compute the physical unit flow. To keep track of the physical units, we need to add the units that have been started or were transferred to the units in process at the start of the month. Then, the total is accounted for by the units that were transferred out during the month, this includes any units in process at the end of the month. The second step is computing the equivalent units of production.

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