Match the following terms to their definitions.

1. Direct labor plus manufacturing Overhead	a. Expresses partially completed units in terms of fully completed units
2. Prepared by department for EUP, production costs, and assignment of costs	b. Used by companies that manufacture homogenous products
3. Equivalent units of production	c. Previous costs brought into later process
4. Process costing system	d. Conversion costs
5. Transferred in costs	e. Combines prior period costs with current period costs
6. Weighted-average method	f. Production cost report

The companies use costing system to arrive at the total cost incurred by the company while manufacturing the products. The costing of products is done either by the process or job order costing system.

Conversion cost is an aggregate of direct labor cost and the works or manufacturing overhead. It is the cost of converting the raw material into final products.

Production cost report is prepared by the companies using the process costing system. The department prepares it for EUP, manufacturing costs, and the assignment of costs.

The equivalent unit of production shows the amount of work done by the manufacturing process. It depicts the partially completed units as the fully completed units.

The process costing system is used by the companies that manufacture similar kinds of products in large quantities to determine the total cost of production.

Transferred in cost means the total cost transferred from one department to another. It is the total cost incurred in the previous department.

The weighted average method is the method for calculating the cost in which the cost of the prior period or process is added to the cost of the current period or process to compute the cost per unit.