Process-costing journal entries and job-costing journal entries are similar with respect to direct materials and conversion costs.

Question

Quizplus · Accepted Answer

Both process-costing and job-costing systems include journal entries for direct materials and conversion costs such as direct labor and manufacturing overhead. The main difference between the two systems is that process costing is used for homogenous products produced in large quantities, while job costing is used for unique or custom products produced in smaller quantities.

Process-Costing Journal Entries and Job-Costing Journal Entries Are Similar with Respect