At the end of business, on December 31, the Ford Motor Company has some cars that are only partly completed. For example, some of these cars do not yet have the motors installed. What types of costs would Ford likely have allocated to these cars in its work in process inventory?

Question

Quizplus · Accepted Answer

Work in process inventory includes all costs incurred in the production of partially completed goods, including raw materials, overhead, and labor costs. Therefore, Ford would likely have allocated all of these costs to the cars in its work in process inventory.

At the End of Business, on December 31, the Ford