The proration approach restates only the ending balances of two inventory accounts: work-in-process and finished goods, to what they would have been if actual rates had been used.

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The proration approach restates the ending balances of three inventory related accounts: Work-in-Process, Finished Goods, and Cost of Goods sold to what they would have been if actual rates had been used.

The Proration Approach Restates Only the Ending Balances of Two