Which of the following accounts will be treated differently by a process costing system as compared to 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

In a process costing system, the Work in Process Inventory account is continuously being updated to reflect the costs associated with each production process. This is different from the job order costing system, where costs are only accumulated for each individual job. Raw Materials Inventory and Finished Goods Inventory accounts are treated similarly in both systems, with costs being accumulated for the materials used and finished products produced. The Cost of Goods Sold account is also treated similarly in both systems, with costs being transferred from the Finished Goods Inventory account when products are sold.

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