Quince, Inc. uses a process costing system. It prepares a production cost report for each processing department.

How will the managers of Quince use these production cost reports to prepare the balance sheet at the end of an accounting period?

A production cost detail shows in detail the total cost of producing a product. It includes raw materials as well as operating costs. Product costs would be recorded as a current asset on the balance sheet until the goods have been sold. As an asset, it can either be:

raw materials inventory,
work-in-progress inventory,
finished goods inventory, which would be dependent on how far towards completion the product is.

​Quince, Inc. uses a process costing system. It prepares a production cost report for each processing department. How will the managers of Quince use these production cost reports to prepare the balance sheet at the end of an accounting​ period?

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Quince, Inc. uses a process costing system. It prepares a production cost report for each processing department.

How will the managers of Quince use these production cost reports to prepare the balance sheet at the end of an accounting period?