The three categories of manufacturing costs comprising the total cost of work in process are direct labor, direct materials, and
A) selling expenses
B) direct expenses
C) accounting salaries expense
D) factory overhead

Question

Quizplus · Accepted Answer

Factory overhead comprises all indirect manufacturing costs, such as rent, utilities, depreciation, and maintenance. It is necessary to include factory overhead in the total cost of work in process in order to calculate the cost of goods sold accurately.

The Three Categories of Manufacturing Costs Comprising the Total Cost