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 involves adding direct materials used, direct labor costs, and indirect production costs (such as rent, utilities, and depreciation) to the beginning balance of work in process inventory and subtracting the ending balance of work in process inventory. Finished goods inventory is only used in the calculation of Cost of Goods Sold.

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