Under process costing,the total production costs incurred in each process must be split between the units that have been completed in that process and transferred to the next process and the ________.
A) Finished Goods Inventory if it is the first process
B) units not completed and remaining in Work-in-Process Inventory for that department
C) Cost of Goods Sold when the units are sold
D) Work-in-Process Inventory of the previous department when there are no sales

Question

Quizplus · Accepted Answer

The units that have been completed in each process and transferred to the next process will have the total production costs incurred in that process allocated to them. The remaining units that are not completed and remain in the Work-in-Process Inventory for that department will also have a portion of the total production costs allocated to them. The other choices are not relevant to the allocation of production costs in process costing.

Under Process Costing,the Total Production Costs Incurred in Each Process