A manufacturer's total cost of making and finishing products in the period is called:
A)Ending finished goods inventory.
B)Total manufacturing costs.
C)Ending work in process inventory.
D)Cost of goods manufactured.
E)Cost of goods sold.

Question

Quizplus · Accepted Answer

Cost of goods manufactured includes all the costs incurred in making and finishing products during a specific time period, including direct materials, direct labor, and manufacturing overhead. It is calculated by adding the beginning work in process inventory, all of the manufacturing costs incurred during the period, and then subtracting the ending work in process inventory.

A Manufacturer's Total Cost of Making and Finishing Products in the Period