Which of the following accounts will be treated differently by a process costing system than by a job order costing system?
A)Raw Materials Inventory
B)Work in Process Inventory
C)Finished Goods Inventory
D)Cost of Goods Sold

Question

Quizplus · Accepted Answer

The Work in Process (WIP) Inventory account will be treated differently by a process costing system than by a job order costing system because in a process costing system, the costs are accumulated by department or process rather than by job. In a job order costing system, each job has its own WIP Inventory account.

Which of the Following Accounts Will Be Treated Differently by a Process