VII. Because the costs of direct labor and overhead are often incurred ____________ throughout the production process, they may, for the sake of convenience, be combined when calculating equivalent units; these combined costs are called _____________ costs.

VIII. Cost flow in a process cost report that uses the FIFO costing method follows the logical _____________ flow of productionthat is, the costs assigned to the first materials processed are the first costs transferred when those materials flow to the next process, department, or work cell.

IX. Preparation of a process cost report using _____________:

A. Step 1 entails computing the total number of ___________ units to be accounted for during the period.

B. Step 2 entails computing ____________ units of production for the period for direct materials and conversion costs.

C. In Step 3, all direct ___________ and ____________ costs for the period and the previous period are added to arrive at total costs.

D. In Step 4, the ___________ per equivalent unit for both direct materials and conversion costs is computed by dividing current period costs by their respective equivalent units.

E. In Step 5, costs are ____________ to the units completed and transferred out during the period, as well as to the ending work in process inventory.