Figure 6-17
Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January:
Units, beginning work in process (1/3 complete) 6,000 Units, ending work in process (1/2 complete) 4,000
-The cost assigned to goods from a prior process is termed:

Question

Quizplus · Accepted Answer

The cost assigned to goods from a prior process is called transferred-in cost. This means that the cost of the 20,000 units transferred from the first department to the second department is the transferred-in cost. The other choices (A, C, and D) are not relevant to the question or do not accurately describe the assigned cost.

Figure 6-17 Loganbery Corporation Produces a Product That Passes Through Two Processes