LO $3-2$: Use T$-$accounts to show the flow of costs in a job$-$order costing system.

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We will discuss how to use T$-$accounts to show the flow of costs in a job$-$order costing system. Direct material costs and direct labor costs are charged to Work in Process. Indirect material costs and indirect labor costs are charged to Manufacturing Overhead. Finally, Manufacturing Overhead is applied to the Work in Process account at the predetermined overhead rate.