The cost of raw material plus direct labour cost plus overhead
A)Constitutes the work-in-process inventory, when the process has not yet been completed.
B)Constitutes the finished goods inventory, when the process has been completed.
C)(a) and (b)
D)None of these.

Question

Quizplus · Accepted Answer

The cost of raw material, direct labour, and overhead constitutes work-in-process inventory when the process is ongoing and finished goods inventory when the process is completed.

The Cost of Raw Material Plus Direct Labour Cost Plus