Final answer:
The statement is true; the work-in-process file serves as the subsidiary ledger for the work-in-process control account, containing detailed records of items in production that aggregate to the summary level shown in the general ledger.
Step-by-step explanation:
The statement that the work-in-process file is the subsidiary ledger for the work-in-process control account is true. In accounting, a subsidiary ledger is a detailed record that contains transaction information, which is then summarized in a control account in the general ledger. The work-in-process (WIP) file comprises detailed individual records of each item that currently exists in the production process. It captures individual costs for materials, labor, and overhead tied to each item or job in a manufacturing setting.
Every transaction in the work-in-process file is aggregated to reflect a summary balance in the work-in-process control account. This is what is reported on the company's balance sheet. The relationship between the two ensures that the detail-level accounting aligns with the high-level financial reporting, making it possible for businesses to track manufacturing progress and financial position related to work-in-process inventory.