Question

In an effort to reduce record-keeping procedure, companies that sell perishable goods will often enter the standard cost of direct material, direct labor, and manufacturing overhead directly into what account?

1) Work-in-Process Inventory
2) Finished-Goods Inventory
3) Cost of Goods Sold
4) Cost of Goods Manufactured
5) Sales Revenue

Answer 1

Effort to reduce record-keeping procedure, companies that sell perishable goods will often enter the standard cost of direct material, direct labor, and manufacturing overhead directly 1)Work-in-Process Inventory

Step-by-step explanation:

Companies that sell perishable goods often use standard costing to streamline record-keeping. In this approach, the standard cost of direct material, direct labor, and manufacturing overhead is entered directly into the Work-in-Process Inventory account. This method helps simplify the tracking of costs associated with the production of perishable goods.

This account is used to accumulate the costs of direct material, direct labor, and manufacturing overhead for products that are in the process of being manufactured but are not yet completed. For perishable goods, this provides an efficient way to track costs as they move through the production process.

Effort to reduce record-keeping procedure, companies that sell perishable goods will often enter the standard cost of direct material, direct labor, and manufacturing overhead directly 1)Work-in-Process Inventory