Under process costing, the costs incurred by each department are recorded in:
A)a job cost sheet.
B)the Finished Goods Inventory account.
C)the Cost of Goods Sold account.
D)a production cost report.

Question

Quizplus · Accepted Answer

Under process costing, the costs incurred by each department are recorded in a production cost report, which details the costs for each department and calculates equivalent units and unit costs. This report is used to track the costs of production and to allocate costs to the finished products. Therefore, choice D is the correct answer. Options A, B, and C are all related to job costing, which is a different costing method used for custom-made products.

Under Process Costing, the Costs Incurred by Each Department Are