In process costing, manufacturing costs are usually combined into two categories: direct materials and conversion costs.

Name: In process costing, manufacturing costs are usually combined into two categories: direct materials and conversion costs.
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Question

Quizplus · Accepted Answer

This is true. Direct materials are the raw materials and components that go into the product, while conversion costs include direct labor and manufacturing overhead costs incurred to convert the raw materials into finished goods.

In Process Costing, Manufacturing Costs Are Usually Combined into Two