In any department, the cost of beginning Work in Process inventory plus the costs incurred during the current period must be
A)less than the costs transferred to the next department.
B)less than the costs in ending Work in Process inventory in the department.
C)equal to the costs transferred to the next department and the costs in ending Work in Process inventory
D)less than the costs incurred in the next department.

Question

Quizplus · Accepted Answer

The total costs incurred in the department, which includes the beginning Work in Process inventory and the costs incurred during the current period, must be accounted for by either being transferred to the next department or remaining in the ending Work in Process inventory. Therefore, the total costs equal the costs transferred to the next department and the costs in ending Work in Process inventory.

In Any Department, the Cost of Beginning Work in Process