Costs are transferred, along with the units, from one WIP inventory to the next.

Name: Costs are transferred, along with the units, from one WIP inventory to the next.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

This statement is true. The costs of direct materials, direct labor, and manufacturing overhead are accumulated in a Work-in-Process (WIP) inventory account. As units move through the manufacturing process, these costs are transferred from one WIP inventory account to the next until they reach Finished Goods inventory.

Costs Are Transferred, Along with the Units, from One WIP