True or false: When using process costing, labor and overhead can be added in any department, but materials can only be added in the first processing department

False

Explanation:

When using process costing, Materials, labor and overhead can be added in any department.

Process costing systems allocate expenses to products by adding total costs at each stage of the manufacturing process then dividing these costs by the total number of units produced.

Typically, the cost per unit for each process will be calculated separately for direct materials and conversion costs. This supports the fact that additional materials can be added at any stage

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