If a company has no ending work in process inventory, it does not need to use the 5-step process costing procedure to determine the cost of making one unit.

Question

Quizplus · Accepted Answer

This is because the 5-step process costing procedure includes calculating the equivalent units of production, which requires taking into account the beginning and ending work in process inventories. If there is no ending work in process inventory, there is no need to perform this step, making the process simpler and faster.

If a Company Has No Ending Work in Process Inventory