The existence of ending work in process inventory necessitates the use of the 5-step process costing procedure.

Question

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The presence of ending work in process inventory requires that the production process be divided into separate steps and costs be allocated accordingly using the 5-step process costing procedure. This is because some portion of the total production costs incurred during the period will be carried over to the next period as work in process inventory. So, to accurately determine the total cost of production and cost per unit of output, the 5-step process costing procedure needs to be followed.

The Existence of Ending Work in Process Inventory Necessitates the Use