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

Question

Quizplus · Accepted Answer

Manufacturing costs include both direct materials and direct labor, as well as manufacturing overhead. Manufacturing overhead includes all indirect costs of production, such as rent, utilities, and depreciation. To assign manufacturing costs to work in process inventory, estimated manufacturing overhead is used. This is because actual manufacturing overhead is not known until the end of the period, so estimates are used to allocate overhead costs to individual units of production as they are being produced.

Which One of the Following Is Used in Assigning Manufacturing