In a process cost system,transferred-in costs represent?
A) costs from external suppliers for materials used in processing.
B) costs attached to partially completed units that have been received from a prior processing department.
C) manufacturing overhead costs applied to the products processed.
D) direct labour and manufacturing overhead costs incurred in processing.

Question

Quizplus · Accepted Answer

Transferred-in costs are costs associated with partially completed units that have been received from a prior processing department. These costs represent the work done in the previous department and are typically added to the direct materials and conversion costs incurred in the current department to arrive at the total manufacturing cost of the current department.

In a Process Cost System,transferred-In Costs Represent