Question

1. In process costing, costs are accumulated in processing departments, rather than by job. Trucy False 2. Under the FIFO method, the cost of materials in the beginning work in process inventory is us

Answer 1

In process costing, costs are accumulated by processing departments rather than by job. FIFO includes the cost of materials in the beginning work in process inventory.

Step-by-step explanation:

In process costing, costs are accumulated in the processing departments rather than by job. This statement is true. Process costing is used when a product or service passes through multiple stages of production, and costs are accumulated by department rather than by job or individual unit. This helps in determining the cost per unit of output and allocating costs appropriately.

Under the FIFO (first-in, first-out) method, the cost of materials in the beginning work in process inventory is included in the costs of the completed units and carried forward as part of the cost of the ending work in process inventory. FIFO assumes that the first units to enter the production process are the first ones to be completed and sold.