When Determining Costs of Jobs, How Does a Company Account

question 103

Multiple Choice

When determining costs of jobs, how does a company account for indirect material?

• A)It is transferred out of Raw Materials into Manufacturing Overhead when used.
• B)It is transferred out of Raw Materials into Work in Process as used.
• C)It is added to Work in Process as used.
• D)It remains part of Raw Materials Inventory.

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