Question

Backflush costing is a costing method that: Charges current production costs directly to finished goods inventory. Charges current production cost directly to work-in-process inventory. Charges current production costs using actual costs incurred.

Answer 1

Charges current production cost directly to work-in-process inventory

Step-by-step explanation:

The blackflush costing is the costing method in which the present cost of production would be charged to the work in process inventory in a direct way

Therefore as per the given situation the second option is correct

ANd, the rest of the options are wrong as it does not meet the criteria

So the second option would be taken into consideration