Which of the following statements is incorrect regarding the

Which of the following statements is incorrect regarding the production costing report?

a. A separate production report is prepared for each major production process on an annual basis.

b. The production report provides information about the number of units and manufacturing costs that flow through a production process during an accounting period.

c. The production report is used to determine how much manufacturing cost to transfer out of Work in Process Inventory and into the next processing department or finished goods if it is the last production process.

d. The production report is used to value any units that are in process at the end of the accounting period.

Solution

Answer :- Option a). A separate production report is prepared for each major production process on an annual basis.

Explanation :- The statement given in option (a) to the given question is incorrect (false) regarding production costing report because a separate production costing report is prepared for each major production process on either monthly basis or the quarterly basis but not on an annual basis.