Using normal costing, which costs never enter the work-in-process account?
A) applied overhead
B) actual overhead
C) direct materials
D) direct labor
E) None of these.

Question

Quizplus · Accepted Answer

Actual overhead costs are never included in the work-in-process account under normal costing. Instead, overhead is applied based on a predetermined rate. Direct materials and direct labor costs are included in the work-in-process account.

Using Normal Costing, Which Costs Never Enter the Work-In-Process Account