When costing manufactured inventory all of the following procedurare necessary except:
A) determining the cost of materials entered into raw materials.
B) determining the cost of raw materials transferred to work in process.
C) recording costs of direct labour applied to work in process.
D) determine the cost of purchases.

Question

Quizplus · Accepted Answer

The other three procedures (determining the cost of materials entered into raw materials, determining the cost of raw materials transferred to work in process, and recording costs of direct labor applied to work in process) are all necessary steps in costing manufactured inventory. However, determining the cost of purchases is not directly related to the costing of manufactured inventory, as it refers to the cost of raw materials purchased rather than the cost of manufacturing them into finished goods.

When Costing Manufactured Inventory All of the Following Procedurare Necessary