In a process costing system, transferred-in costs:
A) Are computed for all production but not reported in the cost of process costing report
B) Usually do not include any indirect costs
C) Are the costs recorded in preceding departments
D) Are the costs of the completed units

Question

Quizplus · Accepted Answer

Transferred-in costs are the costs of production that are incurred in preceding departments and transferred to the current department for further processing. These costs are included in the cost of production report for the current department. Typically, these costs may include direct materials, direct labor, and overhead costs that were incurred in earlier processes.

In a Process Costing System, Transferred-In Costs