Under process costing,the costs incurred by each department are reported in ________.The perpetual inventory system is used.
A) a job cost sheet
B) the Finished Goods Inventory account
C) the Cost of Goods Sold account
D) a production cost report

Question

Quizplus · Accepted Answer

Under process costing, the costs incurred by each department are reported in a production cost report. This report summarizes the total units started, units completed, and the total costs incurred in each department. The perpetual inventory system is used to keep track of the inventory and costs throughout the production process. A job cost sheet is used in job costing, where each unit is different and has unique costs associated with it. The Finished Goods Inventory account and the Cost of Goods Sold account are used in both job costing and process costing, but they do not directly report the costs incurred in each department.

Under Process Costing,the Costs Incurred by Each Department Are Reported