The cost of a department's transferred-in goods is the cost of

Question

Quizplus · Accepted Answer

The cost of transferred-in goods is the cost at which the prior department has computed and transferred their goods to the current department. Therefore, it is the cost of goods transferred out in the prior department. Option A refers to the cost of goods produced by the current department and option C refers to the cost of goods produced by the current department using its own resources, whereas the question is about the cost of goods received from the prior department. Option D is incorrect as one of the options is correct.

The Cost of a Department's Transferred-In Goods Is the Cost