ECONOMICS

Detailed explanation-1: -The assignment of the three manufacturing cost elements to Work in Process in a process costing system is the same as in a job-order costing system. Equivalent units of production are used to determine the cost per unit of completed products.

Detailed explanation-2: -The three general categories of costs included in manufacturing processes are direct materials, direct labor, and overhead. Note that there are a few exceptions, since some service industries do not have direct material costs, and some automated manufacturing companies do not have direct labor costs.

Detailed explanation-3: -Recall that the costs of a manufactured item are direct materials, direct labor, and manufacturing overhead. Costs that support production but are not direct materials or direct labor are considered overhead. Manufacturing overhead has three components: indirect materials, indirect labor, and overhead.

Detailed explanation-4: -Typically, job costing includes customer billing to outline the exact cost of each step in the process of a particular job or order. In process costing, costs accumulate by each process or processing department and may not focus on the exact cost of each item in the process.

Detailed explanation-5: -The correct option is (D) All of these. In process costing, cost are accounted for every process of the manufacturing. Each process may have its own materials, labor and overhead expenses.