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

question 114

Multiple Choice

In a process costing system, some of the increases to Department B's Work in Process Inventory account would come from Department A's

• A) Finished Goods Inventory account.
• B) Materials Inventory account.
• C) Cost of Goods Sold account.
• D) Work in Process Inventory account.

---

Definitions:

Manufacturing Costs

Expenses directly related to the production of goods, such as raw materials, labor, and factory overhead.

Direct Labor

The labor costs of workers who are directly involved in the production of goods or the provision of services.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, culminating in the net profit or loss.

Production

The method of producing goods and services by combining work, materials, and technology.