The flow of costs into a Work in Process Inventory account is very similar for job order and process costing systems.

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Both job order and process costing systems involve accumulating direct materials, direct labor, and manufacturing overhead costs in a Work in Process Inventory account as production occurs. The main difference is in how the costs are traced or allocated to individual units of product. Job order costing assigns costs to specific jobs or batches of customized products, while process costing assigns costs to each unit of product produced in a continuous, repetitive production process.

The Flow of Costs into a Work in Process Inventory