Which of the following statements regarding process costing is false? Both process costing and job costing use the same basic formulas to allocate manufacturing overhead costs. Work in Process Inventory includes actual direct material costs, actual direct labor costs, applied manufacturing overhead costs and any cost of goods manufactured from previous processes. Process costing is typically used by companies that manufacture identical, low-cost units in large quantities. Equivalent units are only used to determine where the units are at in the process. After that, physical units are used to calculate the average unit cost