Which of the following is true as it pertains to the ending Work in Process Inventory?
A)It is determined by adding the cost in the beginning Work in Process Inventory and the costs incurred in the current period and subtracting the cost of goods transferred out of the department.
B)It is the actual costs incurred plus the costs added during the period.
C)It is always greater than the costs transferred into the department.
D)It is greater than the ending inventory in the previous process department.

Question

Quizplus · Accepted Answer

The ending Work in Process Inventory is determined by adding the cost in the beginning Work in Process Inventory and the costs incurred in the current period and subtracting the cost of goods transferred out of the department. This formula allows for an accurate calculation of the costs still remaining in the department's inventory at the end of the period.

Which of the Following Is True as It Pertains to the Ending