Duran Manufacturing Uses a Process Costing System and Manufactures Its

Multiple Choice

Duran Manufacturing uses a process costing system and manufactures its product in three departments.Which of the following is NOT a way in which Duran can use the cost per unit of each process?

A) Duran can look for ways to cut the costs when actual process costs are more than planned process costs.
B) Duran needs to set the selling price to cover the costs of making the product and provide a profit.
C) Duran can only use the cost per unit of each process if all units are fully completed at the end of the accounting period.
D) Duran needs to know the ending balances in the following accounts: Work-In-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.