In process costing, the cost of units finished in the last department will be transferred from work in process to
A) cost of goods sold.
B) completed processes.
C) finished goods.
D) sales.

Question

Quizplus · Accepted Answer

In process costing, the cost of units finished in the last department will be transferred to finished goods. This is because the units are now ready for sale and are a part of the company's inventory until sold. The cost of goods sold will only be recorded when the units are sold to customers. Completed processes and sales are not relevant to the transfer of costs in process costing.

In Process Costing, the Cost of Units Finished in the Last