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Raw Materials Inventory
The total amount of raw materials on hand that are waiting to be used in the production process.
Work in Process
Work in Process (WIP) refers to partially finished goods that are still in the production process at any given time.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.
Manufacturing Overhead
All indirect costs associated with manufacturing a product, including indirect labor, materials, and other expenses.
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