Which of the following represents the correct formula for calculating cost of goods manufactured?
A) Direct materials used + direct labor - factory overhead + beginning work in process - ending work in process.
B) Direct materials used + direct labor + factory overhead + beginning work in process + ending work in process.
C) Direct materials used + direct labor + factory overhead + beginning work in process - ending work in process.
D) Direct materials used + direct labor + factory overhead - beginning work in process - ending work in process.
E) Direct materials used + direct labor + factory overhead - beginning work in process + ending work in process.

Question

Quizplus · Accepted Answer

The correct formula for calculating cost of goods manufactured is (DM + DL + FOH) + BWIP - EWIP, where DM is Direct Materials, DL is Direct Labor, FOH is Factory Overhead, BWIP is Beginning Work in Process, and EWIP is Ending Work in Process. Choice C correctly shows this formula.

Which of the Following Represents the Correct Formula for Calculating