For Externally Reported Inventory Costs, the Work-In-Process Control Account Is

question 192

Multiple Choice

For externally reported inventory costs, the Work-in-Process Control account is increased (debited) by ________.

• A) marketing costs
• B) allocated plant utility costs
• C) the purchase costs of direct and indirect materials
• D) customer-service costs

---

Definitions:

Weighted Average Method

An inventory costing method that averages out the cost of goods available for sale, weighting the cost based on quantities.

Equivalent Units

Equivalent units are a concept in cost accounting used to represent the amount of work done on incomplete units, expressed in terms of fully completed units.

Work in Process Inventory

Goods that are in the production process but are not yet completed.

Direct Materials

Materials in their unprocessed or natural state that can be directly linked and assigned to the end product during the production phase.