The amount computed for cost of goods manufactured should be the same as the amount transferred from the materials inventory, direct labor, and overhead accounts into the Work in Process Inventory account.

Question

Quizplus · Accepted Answer

The cost of goods manufactured includes the total costs incurred in production, which is the sum of direct materials, direct labor, and manufacturing overhead added to the beginning work in process inventory, minus the ending work in process inventory.

The Amount Computed for Cost of Goods Manufactured Should Be