ECONOMICS

Detailed explanation-1: -Cost Flow in Process Costing The typical manner in which costs flow in process costing is that direct material costs are added at the beginning of the process, while all other costs (both direct labor and overhead) are gradually added over the course of the production process.

Detailed explanation-2: -Materials, labor, and/or manufacturing overhead can be added in any processing department. Transferred in costs are accounting for as direct materials, direct labor and overhead. Units are always 100% complete for transferred in costs.

Detailed explanation-3: -With process costing, companies track the flow of costs from department to department, rather than tracking costs for each individual item. Each department adds direct labor and manufacturing overhead costs, plus the cost of any raw materials it uses.

Detailed explanation-4: -The correct option is (D) All of these. In process costing, cost are accounted for every process of the manufacturing. Each process may have its own materials, labor and overhead expenses.