In process costing,which of the following cost(s)is(are)usually included in transferred-in costs?
A) direct materials cost only
B) conversion costs only
C) direct materials cost and conversion costs
D) none of the above

Question

Quizplus · Accepted Answer

Transferred-in costs refer to the cost of materials and processing incurred in previous departments that are carried forward as part of the production process in subsequent departments. These costs usually include both direct materials cost and conversion costs (direct labor and overhead costs). Therefore, choice C is the correct answer as it includes both direct materials cost and conversion costs.

In Process Costing,which of the Following Cost(s)is(are)usually Included in Transferred-In