Under a process costing system, inventory data for the balance sheet is provided by the:
A)Work-in-Process Inventory of each department.
B)Finished Goods account.
C)production cost report.
D)Cost of Sold account.

Question

Quizplus · Accepted Answer

Under a process costing system, inventory data for the balance sheet is provided by the production cost report, which shows the cost and quantity of the units transferred to Finished Goods Inventory and the cost and quantity of the units still in Work-in-Process Inventory. The Finished Goods account and the Cost of Goods Sold account are used for the cost of goods sold and the revenue from sales, respectively.

Under a Process Costing System, Inventory Data for the Balance