Regarding the flow of costs through the inventory accounts,which of the following statements is incorrect?
A) The final amount at each stage is added at the beginning of the next stage.
B) The costs flow from Raw Materials Inventory to Work-in-Process Inventory to Finished Goods Inventory.
C) Purchases and freight in are debited to the Work-in-Process Inventory account.
D) The format for computing the amount used, manufactured, or sold is the same for all three inventory accounts.

Question

Quizplus · Accepted Answer

Purchases and freight in are typically debited to the Raw Materials Inventory account, not the Work-in-Process Inventory account. Work-in-Process Inventory is debited for the direct materials used from Raw Materials Inventory, along with direct labor and manufacturing overhead applied.

Regarding the Flow of Costs Through the Inventory Accounts,which of the Following