ECONOMICS

Detailed explanation-1: -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: -Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called transferred-in costs. Transferred-in costs are costs accumulated during the upstream production processes within a company.

Detailed explanation-3: -Transferred-in cost is also referred to as the accumulated cost of a product when it first arrives in the production department.

Detailed explanation-4: -Production costs are the total expenses incurred by a business in producing a product or service. Production cost factors typically include labor, raw materials, equipment, rent, and other supplies or overhead.

Detailed explanation-5: -Transferred-in costs are costs transferred from one department to another during processing. During petroleum manufacturing, for example, costs are incurred as the product moves through the various areas.