In a process costing system, costs flow into Finished Goods Inventory only from the Work In Process Inventory of the last process.

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In a process costing system, costs flow into Finished Goods Inventory only from the Work In Process Inventory of the last process. This is because the units are completed in the last process and their costs are then transferred to Finished Goods Inventory.

In a Process Costing System, Costs Flow into Finished Goods