Question

In process costing, transferred-in goods are treated as:

a. ending work-in-process units for the subsequent process.
b. a type of direct material for the subsequent process.
c. indirect materials for the subsequent process.
d. equivalent units for the subsequent process.

Answer 1

In process costing, transferred-in goods are treated as ending work-in-process units for the subsequent process.

Step-by-step explanation:

In process costing, transferred-in goods are treated as ending work-in-process units for the subsequent process. This means that the transferred-in goods are considered part of the work-in-process inventory at the end of the current process and will continue to be processed in the subsequent process.