Help Save & Exit Submit Check my work Exercise 16-3 Terminology in process costing LO C1, A1 Select each of the items with the best description of its purpose. Items Work in process inventory accounts Description 1. Hold production costs until products are transferred from production to finished goods (or another department) 2. Standardizes partially completed units into equivalent completed units 3. Holds costs of finished products until sold to customers 4. Describes the activity and output of a production department for a period 5. Holds costs of materials until they are used in production or as factory overhead 6. Combined costs of direct labor and overhead per equivalent unit 7. Computes equivalent units only on production activity in the current period Equivalent units of production Finished goods inventory account Process cost summary Raw materials inventory account Items ET I ---- Finished goods inventory account Process cost summary Raw materials inventory account Conversion cost per equivalent unii. FIFO method