In a process costing system, the cost of ending work in process inventory for a period can be verified by reference to supporting analysis in
A) materials requisitions and labor time tickets.
B) cost recap included in the statement of production.
C) cost recap included in the process cost report.
D) none of the above.

Question

Quizplus · Accepted Answer

The cost recap included in the process cost report provides a summary of the costs incurred in each production department during the period, including the cost of beginning and ending work in process inventory. Therefore, the cost of ending work in process inventory for a period can be verified by reference to supporting analysis in the process cost report. Option A may provide information on direct materials and labor costs, but it may not reflect other costs associated with the production process such as overhead. Option B may not provide detailed information on the costs incurred in each production department.

In a Process Costing System, the Cost of Ending Work