Using the example below, write and explanation on the transfer cost process ( raw materials to work in process to finished goods to cost of goods sold)
Manufacturing a Car
Materials:
-steel
-plastic
-rubber
- Glass
Labor:
-assembly
-painting
-testing
The total cost of making a car is:
Product costs:
Materials: $5,000
Labor: $800
Utilities: $300
Period costs:
Supervisor salary: $1500
Building rent: $1000
Advertising: $100