All costs of the processes in a process costing system ultimately pass through the Cost of Goods Sold account.

Question

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In a process costing system, the costs of each process are accumulated and transferred to the next process until the final product is completed. The Cost of Goods Sold account reflects the total cost of the products sold during a specific period, including the costs incurred in the production process. Therefore, all costs of the processes in a process costing system ultimately pass through the Cost of Goods Sold account.

All Costs of the Processes in a Process Costing System