Cost of goods manufactured is computed as _____.
A)Direct materials + indirect materials
B)Direct materials + direct labor + indirect manufacturing
C)Direct labor + direct materials
D)Direct labor + indirect labor

Question

Quizplus · Accepted Answer

Cost of goods manufactured is the total cost of the goods that were completed during the accounting period. It includes direct materials, direct labor, and indirect manufacturing costs such as rent, utilities, and depreciation of equipment. Therefore, option B (Direct materials + direct labor + indirect manufacturing) is the appropriate choice.

Cost of Goods Manufactured Is Computed as _____