All costs of the processes in a process costing system ultimately pass through the cost of goods sold account.

Question

Quizplus · Accepted Answer

In a process costing system, the cost of each process is added to the cost of the product as it moves through the production process until the final product is completed. Once the final product is completed, all costs associated with the production process are included in the cost of goods sold account. Therefore, all costs ultimately pass through the cost of goods sold account.

All Costs of the Processes in a Process Costing System