Asked by Myranda Jimenez on Jun 21, 2024
Verified
When materials are purchased in a process costing system, a work in process account is debited with the cost of the materials.
Process Costing System
An accounting system used for homogenous products, where costs are accumulated and then assigned to units of output on an average basis.
Work in Process Account
An account that tracks the costs associated with goods that are in the process of being manufactured but are not yet complete.
- Acquire knowledge of the accounting records linked to transactions in a process costing system.
Verified Answer
AF
Amindu FonsekaJun 22, 2024
Final Answer :
False
Explanation :
In a process costing system, when materials are purchased, they are typically debited to a Raw Materials Inventory account, not directly to a Work in Process account.
Learning Objectives
- Acquire knowledge of the accounting records linked to transactions in a process costing system.
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