Total Cost Accounted for Is the Sum of the Cost

question 87

True/False

Total cost accounted for is the sum of the cost of the units transferred out of the department plus the cost of the ending Work in Process inventory.

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Definitions:

Reverse Order

A method of organizing or sequencing items so that the last becomes first and the first becomes last.

Last-In, First-Out

An inventory management and valuation method where the most recently produced or acquired items are sold or used first.

Perpetual Inventory System

An inventory tracking system that updates the balance of inventory continuously with each sale or purchase.

Inventory Ledger

A document or system that tracks the quantities, costs, and types of a company's inventory on hand, including goods in transit and on order.