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

Question

Quizplus · Accepted Answer

The correct formula for calculating the cost of goods manufactured is: Direct materials used + direct labor + factory overhead + beginning goods in process inventory - ending goods in process inventory. This formula adds all manufacturing costs to the beginning inventory and subtracts the ending inventory to calculate the total cost of goods manufactured during the period.

Which of the Following Represents the Correct Formula for Calculating