What are transferred-in costs as used in a process cost accounting system?
A)Labor that is transferred from another department within the same plant instead of hiring temporary workers from the outside
B)Costs that have been incurred in a prior department on units that have been moved into a subsequent department
C)Supervisory salaries that are transferred from an overhead cost center to a production cost center
D)Ending work in process inventory of a previous process that will be used in a succeeding process

Question

Quizplus · Accepted Answer

Transferred-in costs refer to costs that have been incurred in a prior department on units that have been moved into a subsequent department. These costs are then included in the total cost of the production process in the subsequent department. Option A refers to labor costs, but it does not necessarily have to be transferred from another department. Option C refers to overhead costs and option D refers to ending work in process, which are not necessarily transferred-in costs.

What Are Transferred-In Costs as Used in a Process Cost