Transferred-in cost definition

What is Transferred-In Cost?

Transferred-in cost is the cost that a product accumulates during its tenure in upstream work centers. Thus, it is the accumulated cost of a product when it first arrives in a downstream work center. The transferred-in cost is then treated as the starting cost of the receiving work center, to which additional costs may be added by that work center.

This concept is used in a process costing system.

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