In a process cost system units to be accounted for in a department are equal to the
A) number of units started or transferred into the department.
B) number of units transferred out of the department.
C) units in the beginning inventory plus the units started or transferred into the department.
D) ending inventory plus the units started or transferred into the department.

Question

Quizplus · Accepted Answer

Units to be accounted for in a department include the beginning inventory (if any) and the units started or transferred into the department during the period. Therefore, C is the best choice as it includes both the beginning inventory and the units started/transferred into the department.

In a Process Cost System Units to Be Accounted for in a Department