When costing manufactured inventory all of the following procedures are necessary except:
A) determining the cost of materials entered into raw materials.
B) determining the cost of raw materials transferred to work in process.
C) recording costs of direct labour applied to work in process.
D) determine the cost of purchases.

Question

Quizplus · Accepted Answer

Determining the cost of purchases is related to the procurement of inventory rather than the costing of manufactured inventory. The other options (A, B, C) directly relate to the process of costing inventory that is being manufactured, including tracking materials, labor, and the movement of materials through the production process.

When Costing Manufactured Inventory All of the Following Procedures Are