In a process cost system,a transferred-in cost is the same thing as raw materials cost.

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Parallel to the physical flow of product through the manufacturing process,cost accumulations pass from one department to the next.The end products of one department become the raw materials of the next department.The costs transferred from one department to the next are transferred-in costs.Transferred-in costs are combined with the additional materials,labor,and overhead costs incurred by each succeeding department.

In a Process Cost System,a Transferred-In Cost Is the Same