The process costing production report is used to determine how much manufacturing cost to transfer out of Finished Goods Inventory and into Cost of Goods Sold.

Question

Quizplus · Accepted Answer

The process costing production report is used to calculate the cost of products manufactured during a period, not to determine the transfer of costs from Finished Goods Inventory to Cost of Goods Sold. That transfer occurs based on the cost of goods that have been sold.

The Process Costing Production Report Is Used to Determine How