Which of the Following Is True as It Pertains to the Ending

question 105

Multiple Choice

Which of the following is true as it pertains to the ending Work in Process Inventory?

• A)It is determined by adding the cost in the beginning Work in Process Inventory and the costs incurred in the current period and subtracting the cost of goods transferred out of the department.
• B)It is the actual costs incurred plus the costs added during the period.
• C)It is always greater than the costs transferred into the department.
• D)It is greater than the ending inventory in the previous process department.

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Definitions:

Raw Materials

The basic materials that are processed or used in the manufacturing of goods or finished products.

Predetermined Overhead Rate

A calculated figure used for assigning the estimate of manufacturing overhead costs to individual units of production, based on a set rate determined at the beginning of an accounting period.

Direct Materials Cost

The total cost of all the raw materials used in the production of a product or service.

Machine-hours

A measure of the amount of time a machine is operated, used in calculating manufacturing costs and allocating expenses based on machine usage.