Work-in-process inventory is composed of:
A)direct material and direct labour.
B)direct labour and manufacturing overhead.
C)direct material and manufacturing overhead.
D)prime costs.
E)direct material, direct labour, and manufacturing overhead.

Question

Quizplus · Accepted Answer

Work-in-process inventory includes all the costs incurred during the production process, which includes direct material, direct labour, and manufacturing overhead. Therefore, choice E is the best answer.

Work-In-Process Inventory Is Composed Of