ECONOMICS

Detailed explanation-1: -Answer and Explanation: The correct option is A. Transferred-in costs are the costs incurred by a preceding production department that that department has allocated to the units it completed and transferred to the next department.

Detailed explanation-2: -Transferred-in costs are the costs accumulated by the product at any given point in production. They are “transferred in” to the new business department that receives the partially finished product and is responsible for continuing the production process.

Detailed explanation-3: -Answer and Explanation: Transferred in costs are costs that have been incurred in a prior department on units that have been moved into a subsequent department. They normally include materials, labor and overhead. This normally occurs when a manufacturing company has different processing department in their production.

Detailed explanation-4: -The manufacturing cost that is transferred from one production process to another (for example, from production to packaging) is called the: transferred-in cost.

Detailed explanation-5: -Process costing is a system for assigning manufacturing costs to each unit produced. This system accumulates direct materials, direct labor, and overhead costs separately and assigns an average cost to each unit produced.