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True or False? Process costing typically uses only one Work in Process Inventory account, while job...

True or False? Process costing typically uses only one Work in Process Inventory account, while job order costing typically uses a separate Work in Process Inventory account for each department.

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Answer #1

The given statement is false because a separate Work in Process account is maintained for each processing department in Process costing whereas in job order costing system the entire company may have only one Work in Process account. The completed production of the first processing department is transferred to Work in Process account of the second processing department.

Therefore the statement "Process costing typically uses only one Work in Process Inventory account, while job order costing typically uses a separate Work in Process Inventory account for each department" is False.

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