In a process costing system with multiple production departments, costs from the first department's ending work in process are transferred to the second department's finished goods before going into the second department's work in process.

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In a process costing system, costs from the first department's ending work in process are transferred to the second department's work in process, not directly to finished goods. Costs move through each department's work in process before being transferred to finished goods upon completion.

In a Process Costing System with Multiple Production Departments, Costs