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In a Process Costing System, Indirect Materials Are Charged to Work

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In a process costing system, indirect materials are charged to Work in Process.


Definitions:

Average Cost

A method of inventory valuation which calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.

Ending Inventory

The total value of a company's merchandise, raw materials, and products left unsold at the end of an accounting period.

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