5 The completion of goods is recorded as a decrease in the w

5. The completion of goods is recorded as a decrease in the work in process inventory account when using:

          Job-order costing/

Process costing

Job-order costing/

Process costing

Solution

Answer: Job order costing -Yes/Process costing -Yes Reason: Let us first look at what is job costing and process costing \"Job costing involves the detailed accumulation of production costs attributable to specific units or group of units.\" \"Process costing involves the accumulation of costs for long production runs involving products that are indistinguishable from each other.\" We can analyze the difference between job costing and process costing below JOB COSTING PROCESS COSTING 1 Cost accumulate job wise Job accumulate department wise for production 2 Many different jobs are worked in A single product is produced either on continuing basis or on different period long-term periods In both the cases production recorded in separate account for material inventory, labor, and overhead then transfer to a work in process inventory account. After completion of production, the good recorded as a decrease in the work in process account. Once job completed the cost of particular job is decreased from the work in process account in Job Costing. Once a production completed, the completed goods decreased from work in process account in process costing.