Asked by Selena Dahabreh on Jul 16, 2024
Verified
In a process costing system, costs flow into finished goods inventory only from the work in process inventory of the last manufacturing process.
Process Costing System
An accounting method used to allocate costs to units of production in continuous processes, suitable for homogenous products.
Work In Process Inventory
The direct materials costs, the direct labor costs, and the applied factory overhead costs that have entered into the manufacturing process but are associated with products that have not been finished.
- Understand the flow of costs in process costing, including movements between work in process accounts.
Verified Answer
RK
Reese KlingelJul 18, 2024
Final Answer :
True
Explanation :
This is true. In a process costing system, the costs of the various manufacturing processes are accumulated in the work in process inventory account of each process. Once the product is completed, the costs from the last process flow into finished goods inventory, ready for sale.
Learning Objectives
- Understand the flow of costs in process costing, including movements between work in process accounts.
Related questions
In a Process Costing System, Costs Are Transferred from One ...
In a Process Costing System, Costs Flow into Finished Goods ...
In Process Costing, a Separate Work in Process Account Is ...
Costs Are Transferred, Along with the Units, from One Work ...
When Goods Are Sold, Their Costs Are Transferred from Work ...