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.

Question

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If a company has ending work in process inventory, it means that not all units have been completed in the production process. Therefore, the 5-step process costing procedure is necessary to determine the cost of making one unit, as it takes into account the materials, labor, and overhead costs incurred throughout the entire production process.

If a Company Has Ending Work in Process Inventory,it Must