Transferred-in costs incurred in a previous department and charged to a subsequent department
A)are combined with direct materials costs of the subsequent department for a total direct materials costs figure.
B)are always from the previous period.
C)become part of Cost of Goods Sold in the current period.
D)are always assigned using the FIFO method.
E)follow the physical movement of the units.

Question

Quizplus · Accepted Answer

Transferred-in costs follow the physical movement of the units as they move from one department to another in a production process.

Transferred-In Costs Incurred in a Previous Department and Charged to a Subsequent