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. This allows for the tracking of costs as they are incurred during the production process. The costs are then transferred to the Finished Goods Inventory account when the units are completed. Manufacturing overhead is included in the determination of inventory costs. Inventory costs are calculated throughout the production process and are not dependent on the sale of the goods.

In a Process Cost Accounting System