Which of the following will never be a component of the cost of Work in Process in a company's initial production department?
A)Direct material
B)Direct labor
C)Transferred-in costs
D)Manufacturing overhead

Question

Quizplus · Accepted Answer

Transferred-in costs are costs that have been incurred in previous production departments and are included in the cost of the product when it is transferred to the current production department. Therefore, they would not be included in the cost of Work in Process in the initial production department. Direct material, direct labor, and manufacturing overhead are all costs that would be included in the cost of Work in Process in the initial production department.

Which of the Following Will Never Be a Component of the Cost