Both job order costing and process costing ________.

Answers:close out the Work-in-Process account at the end of the month

include period costs in the cost of the product

use weighted average inventory costing

have the same product costs

Answer: Close out the Work-in-Process account at the end of the month

Both job and process cost systems have the same cost flows. Materials, labor, and overhead costs are recorded then transferred to a work in process inventory account.

• Option 2 is wrong because period cost is not included both in job order and process costing.
• Option 3 is wrong because weighted average method is not used in job order costing while process costing uses either weighted average method or FIFO method.
• Option 4 is also wrong because job order costing is used for individual/unique/customized products while process costing is used for mass produced products and accumulates costs per department.