Which of the following statements about a process costing system is incorrect?
A)In a process costing system, each processing department has a work in process account.
B)In a process costing system, equivalent units are separately computed for materials and for conversion costs.
C)In a process costing system, overhead can be underapplied or overapplied just as in job-order costing.
D)In a process costing system, materials costs are traced to units of products.

Question

Quizplus · Accepted Answer

In a process costing system, materials costs are not traced to individual units of products, but rather are averaged across all units produced during a particular period. This is because process costing systems assume that all units in a particular production batch are identical and therefore should be allocated the same amount of costs.

Which of the Following Statements About a Process Costing System