In a process costing system, direct labor and manufacturing overhead are normally
A)incurred at the end of the process.
B)incurred evenly throughout the process.
C)incurred in full at the beginning of the process.
D)not recorded.

Question

Quizplus · Accepted Answer

Direct labor and manufacturing overhead are typically incurred evenly throughout the production process in a process costing system. This is because the products being produced are typically homogeneous and cannot be differentiated based on the individual labor and overhead costs incurred. Therefore, it is most appropriate to allocate these costs equally across all units produced during the process.

In a Process Costing System, Direct Labor and Manufacturing Overhead