One reason for preparing a process cost report for a particular department is to determine the amount of costs to transfer to the next department or to the Finished Goods Inventory account at the end of the period.

Question

Quizplus · Accepted Answer

The process cost report summarizes the total costs incurred in a particular department and calculates the cost per unit produced. This information is used to transfer costs to the next department or to the Finished Goods Inventory account based on the number of units produced. Therefore, the statement is true.

One Reason for Preparing a Process Cost Report for a Particular