Which of the following is 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 the cost of goods manufactured is: Direct materials used + direct labor + factory overhead + beginning work in process inventory − ending work in process inventory. This formula adds the total manufacturing costs to the beginning work in process inventory and subtracts the ending work in process inventory to calculate the cost of goods manufactured.

Which of the Following Is the Correct Formula for Calculating