In a process costing system,some of the increases to Department C's Work in Process Inventory account would come from Department B's
A)Finished Goods Inventory account.
B)Materials Inventory account.
C)Cost of Goods Sold account.
D)Work in Process Inventory account.

Question

Quizplus · Accepted Answer

In a process costing system, Work in Process Inventory account represents the cost of partially completed goods. Therefore, as production flows from one department to another, the cost of completing the work-in-process of one department is transferred to the next department's Work in Process Inventory account. Hence, some of the increases to Department C's Work in Process Inventory account would come from Department B's Work in Process Inventory account. The Finished Goods Inventory account is used to record completed goods, so it is not applicable. The Materials Inventory account tracks the cost of raw materials, and the Cost of Goods Sold account reflects the cost of goods sold, neither of which are directly related to the question.

In a Process Costing System,some of the Increases to Department