Which of the following should not be included in the computation of cost of goods manufactured?
A) Power costs
B) Small tools expense
C) Total selling costs
D) Work in Process Inventory

Question

Quizplus · Accepted Answer

Total selling costs should not be included in the computation of cost of goods manufactured, as they are not part of the production process. Cost of goods manufactured includes direct materials, direct labor, and manufacturing overhead costs, such as power costs and small tools expense. Work in Process Inventory may be included in the computation if it represents partially completed goods in the production process.

Which of the Following Should Not Be Included in the Computation