Which of the following correctly computes cost of goods manufactured?
A) Beginning work in process + Direct materials used + Direct labor + Overhead - Ending work in process
B) Beginning work in process + Cost of goods sold - Ending finished goods
C) Beginning work in process + Direct materials used + Direct labor + Overhead
D) None of these.

Question

Quizplus · Accepted Answer

The cost of goods manufactured is calculated by adding the beginning work in process inventory to the total manufacturing costs (direct materials used, direct labor, and overhead) and then subtracting the ending work in process inventory.

Which of the Following Correctly Computes Cost of Goods Manufactured