In process costing,each department computes the product cost of ________.
A) completed goods transferred out of the department only
B) completed goods waiting to be sold only
C) uncompleted goods in the department only
D) uncompleted goods in the department and completed goods transferred out of the department

Question

Quizplus · Accepted Answer

Process costing involves computing the cost of each department's production process. The cost includes the cost of both the completed goods transferred out of the department and the uncompleted goods remaining in the department. Therefore, option D is the correct answer. Options A and B are incorrect because they do not reflect the total cost of production in the department. Option C is also incorrect because it does not account for the cost of completed goods transferred out of the department.

In Process Costing,each Department Computes the Product Cost of ________