Which of the following describes cost of goods manufactured?
A) the cost of direct materials used in production
B) the product cost of goods sold during the current period
C) the cost remaining in ending work-in-process inventory
D) the product cost of goods completed during the current period

Question

Quizplus · Accepted Answer

Cost of goods manufactured refers to the total product cost of goods completed during the current period, including direct materials, direct labor, and manufacturing overhead. This cost is then transferred to finished goods inventory and eventually to cost of goods sold when the product is sold. Therefore, choice D is the correct answer.

Which of the Following Describes Cost of Goods Manufactured