What amount is given by the sum of direct materials, direct labour, and manufacturing overhead incurred?
A)total cost of work in process
B)cost of goods available for sale
C)total manufacturing costs
D)cost of goods manufactured

Question

Quizplus · Accepted Answer

The sum of direct materials, direct labor, and manufacturing overhead incurred is known as total manufacturing costs. This includes all costs associated with the production process and is used to calculate the cost of goods manufactured. Choices A, B, and D are not accurate descriptions of the amount calculated by adding direct materials, direct labor, and manufacturing overhead incurred.

What Amount Is Given by the Sum of Direct Materials