In a process costing system, the number of WIP inventories
A)equal the number of production departments.
B)equal the number of products produced.
C)equal the number used in a job cost system.
D)cannot equal the number of parts used in the product.

Question

Quizplus · Accepted Answer

In a process costing system, each production department is considered a separate stage of the production process with its own WIP inventory. Therefore, the number of WIP inventories will equal the number of production departments.

In a Process Costing System, the Number of WIP Inventories