Which one of the following is true of the manufacturing operations of a company using process costing?
A)A product typically must pass through two or more finished goods departments.
B)Manufacturing overhead and direct labor costs are referred to as conversion costs.
C)Transferred-in costs occur only in departments that have no direct labor costs.
D)Costs transferred in must equal total costs transferred out of each work in process department.

Question

Quizplus · Accepted Answer

In process costing, direct materials are added at the beginning of the process, and manufacturing overhead and direct labor costs are added during production. These costs are referred to as conversion costs.

Which One of the Following Is True of the Manufacturing