Cost accounting pedro guerrero

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Reflects the primary sources of costs for units in production.
Indicates the costs required to convert the raw materials into finished products.
The cost accountant’s job is to design a system in which specific cost elements are recorded as incurred and then charged to production as the work flows through the operating cycle.

Conversion costs are consists of the direct labor and direct materials.
The work in process inventory reflects the manufacturing costs of goods on which manufacturing has begun but has not been completed at the end of the fiscal year.

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