If a company uses a process costing system to account for costs in its three production departments,how many Work in Process accounts will it use?
A)5
B)3
C)1
D)4

Question

Quizplus · Accepted Answer

A process costing system is used in industries where identical products are processed through various departments. The system tracks the average cost per unit of the product. In this system, each department has its own Work in Process account. Therefore, if there are three production departments, the company will use three Work in Process accounts. Therefore, the best choice is B.

If a Company Uses a Process Costing System to Account