In a process costing system, costs are transferred from the Work in Process inventory account directly to the Cost of Goods Sold account.

Question

Quizplus · Accepted Answer

Costs are not transferred directly from Work in Process to Cost of Goods Sold in a process costing system. Instead, they go through intermediate accounts such as Finished Goods inventory and Cost of Goods Manufactured before reaching Cost of Goods Sold.

In a Process Costing System, Costs Are Transferred from the Work