Which one of the following is used in assigning manufacturing costs to work in process inventory?

Question

Quizplus · Accepted Answer

Manufacturing overhead is allocated to work in process inventory using estimated overhead rates. This is because actual overhead costs are often not known until the end of the period, and using estimated rates allows for a more accurate allocation of costs during the production process. Materials purchased invoices and finished goods inventory costs are not used in the allocation of manufacturing costs to work in process inventory, as they relate to different stages of the manufacturing process.

Which One of the Following Is Used in Assigning Manufacturing