Which of the following correctly computes cost of goods manufactured?
A) Beginning work in process + Direct materials used + Direct labor + Overhead − Ending work in process.
B) Beginning work in process + Cost of goods sold − Ending finished goods
C) Beginning work in process + Direct materials used + Direct labor + Overhead
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

The cost of goods manufactured is calculated by adding the beginning work in process to the total manufacturing costs (which include direct materials used, direct labor, and overhead) and then subtracting the ending work in process. This formula accurately reflects the total cost of goods that were completed during the period.

Which of the Following Correctly Computes Cost of Goods Manufactured