Just-in-time costing systems do not use a separate Work-in-Process Inventory account.

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Just-in-time costing systems do not use a separate Work-in-Process Inventory account as they aim to minimize inventory levels and focus on producing goods only when they are needed. As a result, the cost of direct materials, direct labor, and overhead is directly transferred to Finished Goods Inventory or Cost of Goods Sold, rather than being placed in a Work-in-Process Inventory account.

Just-In-Time Costing Systems Do Not Use a Separate Work-In-Process Inventory