Normal costing is when:

A) actual material, labour and overhead costs are added to work in process.
B) actual material and predetermined labour and overhead costs are added to work in process.
C) actual labour, and predetermined material and overhead costs are added to work in process.
D) actual material and labour and predetermined overhead costs are added to work in process.

Normal Costing

An accounting method that assigns costs to products based on direct materials, direct labor, and an allocated portion of manufacturing overhead based on normal activity levels.

Work in Process

Inventory items that are in the production process but are not yet complete.

Predetermined Overhead

An estimated rate used to allocate manufacturing overhead costs to products based on planned activity levels.