If a company has ending Work In Process Inventory it must use the 5-step process costing procedure to determine the cost of making one unit.

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When a company has ending Work In Process Inventory, it means that some units were partially completed during the production process. To determine the cost of making one unit, the 5-step process costing procedure must be used. This procedure involves calculating equivalent units, determining the total cost of production, and dividing it by the equivalent units to get the cost per unit.

If a Company Has Ending Work in Process Inventory It