In a manufacturing firm,the computation of Cost of Goods Manufactured does NOT use ________.
A) Finished Goods Inventory, ending balance
B) indirect production costs
C) direct labor costs
D) direct materials used

Question

Quizplus · Accepted Answer

The computation of Cost of Goods Manufactured only includes direct materials used, direct labor costs, and indirect production costs. The ending balance of finished goods inventory is used to compute Cost of Goods Sold, not Cost of Goods Manufactured.

In a Manufacturing Firm,the Computation of Cost of Goods Manufactured