For each period, the total cost that must be accounted for is the sum of
A)the costs in the beginning and ending Work in Process Inventory accounts.
B)all costs that were incurred during this period.
C)costs in the beginning Work in Process Inventory and costs incurred during the period.
D)costs transferred out of the department and costs in the beginning Work in Process Inventory.

Question

Quizplus · Accepted Answer

The total cost that must be accounted for includes costs in the beginning Work in Process Inventory and costs incurred during the period. Option A only considers the beginning and ending Work in Process Inventory accounts, which may not reflect all costs incurred during the period. Option B is too broad and includes costs that may not be relevant to the specific period being accounted for. Option D only considers costs transferred out of the department, which again does not reflect all costs incurred during the period.

For Each Period, the Total Cost That Must Be Accounted