Question

In a process cost system, units to be accounted for in a department are equal to the number of units transferred out of the department. units in the beginning inventory plus the units started or transferred into the department. number of units started or transferred into the department. ending inventory plus the units started or transferred into the department.

Answer 1

Answer:

In a process cost system, units to be accounted for in a department are equal to:

• units in the beginning inventory plus the units started or transferred into the department.

Explanation:

Process cost systems are used by companies that continuously mass produce a large number of identical units. Generally the costs associated to producing one unit cannot be differentiated due to nature of the production processes and the units being identical. So the process costing system accumulates costs and assigns them at the end of the period.