Which of the following statements is true?
A)A process costing system will have a single Work in Process Inventory account.
B)A process costing system will have a separate Work in Process Inventory account for each of the major processes.
C)A job costing system will have a separate Work in Process Inventory account for each of the major processes.
D)A process costing system will have a separate Raw Materials Inventory account for each of the major processes.

Question

Quizplus · Accepted Answer

In a process costing system, each major process will have its own separate Work in Process Inventory account to track the costs incurred in that process. This allows for more accurate cost tracking and analysis. A job costing system may also have separate Work in Process Inventory accounts for each job, but that is not the question being asked. Option A and D are incorrect because a process costing system may have multiple Work in Process Inventory accounts and only one Raw Materials Inventory account.

Which of the Following Statements Is True