In process costing, units that are partially completed are accounted for the same as units in finished goods inventory.

Question

Quizplus · Accepted Answer

Units that are partially completed are not accounted for the same as units in finished goods inventory in process costing. Instead, they are accounted for in the work-in-progress inventory account at their current stage of completion. Only when they are fully completed are they transferred to finished goods inventory.

In Process Costing, Units That Are Partially Completed Are Accounted