Which of the following is TRUE about transferred$-$in costs?

ANSWER

The cost per equivalent unit is calculated for transferred$-$in

costs, and includes direct materials but NOT conversion costs,

in a successive division.

The cost per equivalent unit is NOT calculated for transferred$-$

in costs, but includes direct materials and conversion costs, in a

successive division.

The cost per equivalent unit is calculated for transferred$-$in

costs, but NOT for direct materials and conversion costs, in a

successive division.

The cost per equivalent unit is calculated for transferred$-$in

costs, in addition to direct materials and conversion costs, in a

successive division.