In a production cost report using process costing, transferred-in costs are similar to:
A)Materials costs added at the end of the process.
B)Materials costs added at the beginning of the process.
C)Conversion costs added during the process.
D)Conversion costs transferred to the next process.
E)Conversion costs included in beginning inventory.

Question

Quizplus · Accepted Answer

Transferred-in costs in process costing are similar to materials costs added at the beginning of the process because they represent the costs of partially completed products that are moved from one process to the next. These costs are treated as the initial costs for the receiving department, similar to how materials added at the beginning are the initial costs for a product in a process.

In a Production Cost Report Using Process Costing, Transferred-In Costs