Arrange the practical steps involved in the preparation of process account where there is work in progress.
A. Prepare process account
B. Prepare statement of Evolution
C. Prepare statement of cost per equivalent unit
D. Prepare statement of equivalent production
E. Determine and analyze the number of physical units in the form of inputs (transferred from previous process) and output
Choose the correct answer from the options given below: ​

Correct option is B

The correct sequence for process account preparation is:
1. E – Determine and analyze the number of physical units in inputs and output.
2. D – Prepare statement of equivalent production.
3. C – Prepare statement of cost per equivalent unit.
4. B – Prepare statement of evaluation.
5. A – Prepare process account.

Information Booster:
1. Process costing is used in industries like chemicals and textiles.
2. Work-in-progress means incomplete production at the end of a period.
3. Equivalent units help in costing when partial units exist.
4. Costs are assigned based on materials, labor, and overheads.
5. Statements summarize production and costs for better financial control.
6. Final process accounts report costs per unit and total cost.