## Answers

Costs incurred in a previous process that are carried forward as part of the product's cost when it moves to the next department | Transferred in costs |

Costing system used by a company producing computer chips | Process costing |

Measure of the work done during a production period, expressed in terms of fully complete units of output | Equivalent units |

Summary of the activity in a processing department for a specific period | Cost of production report |

Prime costs | Direct labor and direct materials |

A process costing method that costs each period's equivalent units of work with that period's costs per equivalent unit | First-in, first-out method |

Conversion costs | Direct labor and factory overhead |

Costing system used by a company producing custom window treatments | Job order costing |

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