Answer:
The correct answer is letter "D": trace direct-material cost to each product produced and use a predetermined application rate for conversion cost.
Explanation:
The Operation-costing system combines <em>Process Costing </em>with <em>Job costing</em>. Process costing is mostly used for mass-production undifferentiated goods so each product will be given the same cost. Job Costing, instead, is typically used for manufacturers of tailored products, thus, each product has different <em>material, direct labor, </em>and <em>overhead costs</em>.
So, <em>to determine the costs of manufactured goods under the operation-costing system, direct material should be allocated separately and the use of an application will be necessary to determine the conversion cost -the combination of direct labor and overhead.</em>