In a process cost accounting system,

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In a process cost accounting system, the Work in Process Inventory accounts are used to accumulate the costs for labor, materials, and manufacturing overhead. The Finished Goods Inventory account is only debited for the cost of completed units at the end of the manufacturing process. Manufacturing overhead is included in the determination of inventory costs, and inventory costs are calculated as goods are completed, not necessarily when they are sold.

In a Process Cost Accounting System