Trenton Company is a manufacturing company with several processing departments.The company uses a process cost system.When goods are complete,the product cost transferred to finished goods inventory includes the sum of product costs from all the processing departments.

Question

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In a process cost system, the cost of each processing department is accumulated and then transferred to the finished goods inventory. Therefore, the finished goods inventory includes the sum of product costs from all the processing departments.

Trenton Company Is a Manufacturing Company with Several Processing Departments