In a process costing system, some of the increases to Department B's Work in Process Inventory account would come from Department A's
A) Finished Goods Inventory account.
B) Materials Inventory account.
C) Cost of Goods Sold account.
D) Work in Process Inventory account.

Question

Quizplus · Accepted Answer

In a process costing system, the Work in Process Inventory account accumulates the costs of materials, labor, and overhead for each department in the production process. Therefore, increases in Department B's Work in Process Inventory account would come from the costs incurred within that department, including materials, labor, and overhead. The costs from Department A's Finished Goods Inventory account, Materials Inventory account, or Cost of Goods Sold account would not be included in the Work in Process Inventory account for Department B.

In a Process Costing System, Some of the Increases to Department