The manufacturing cost that is transferred from one production process to another (for example,from production to packaging)is called the:
A)beginning Work in Process Inventory cost.
B)ending Work in Process Inventory cost.
C)transferred-in cost.
D)accumulated cost of goods.

Question

Quizplus · Accepted Answer

Transferred-in cost refers to the manufacturing cost that is incurred in the production process and is transferred from one production process to another. It includes the cost of materials, labor, and overhead that have already been incurred in prior production processes. Beginning and ending Work in Process Inventory costs refer to the cost of partially completed products at the beginning and end of a production period. Accumulated cost of goods refers to the total cost of goods produced during a given period.

The Manufacturing Cost That Is Transferred from One Production Process