Question

Which of the following is unique to a process costing​ system? A. Work is not started on a product until an order is received. B. Costs for each process stay with that process until the goods are moved to Finished Goods Inventory. C. Each process has its own WIP account. D. Direct​ materials, direct labor and Manufacturing Overhead are assigned to the first department only.

Answer 1

Answer:

Option C.

Explanation:

Process costing is a technique utilized in manufacturing units where goods are produced continuously through various processes. This method is used to find the average cost of production.

Wrigley Company is an example of a company that uses the process costing​ system.

In a process costing​ system, each process has its own WIP account.

Option C. is correct.