Companies That Use a Process-Cost Accounting System Would

Multiple Choice

Companies that use a process-cost accounting system would:

A) establish a separate Work-in-Process Inventory account for each manufacturing department.
B) establish a separate Finished-Goods Inventory account for each manufacturing department.
C) pass completed production directly to Cost of Goods Sold.
D) charge goods produced with actual overhead amounts rather than applied overhead amounts.
E) eliminate the need for the Finished-Goods Inventory account.