Asked by Judie Alfaro on Jul 30, 2024
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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
A method of allocating production costs to products and services based on the processes they go through, common in industries where products are indistinguishable.
Costs Flow
The movement and allocation of costs through different stages of production or services within a company.
Finished Goods
Products that have completed the manufacturing process but have not yet been sold to customers.
- Comprehend the movement of costs within the accounts of a process costing system.
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Learning Objectives
- Comprehend the movement of costs within the accounts of a process costing system.
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