When using normal costing,which costs never enter the work-in-process account?
A)applied overhead
B)actual overhead
C)direct materials
D)direct labour

Question

Quizplus · Accepted Answer

In normal costing, actual overhead costs are not directly included in the work-in-process account. Instead, indirect costs are allocated using a predetermined overhead rate based on estimated costs and activity levels. Therefore, only the applied overhead costs are included in the work-in-process account. Direct materials and direct labor costs are always included in the work-in-process account.

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