Cost of goods manufactured is equal to
A)Direct Materials + Direct Labor + Overhead.
B)Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory.
C)Beginning Work in Process Inventory + Period Costs - Ending Work in Process Inventory.
D)Beginning Work in Process Inventory + Product Costs.

Question

Quizplus · Accepted Answer

Cost of goods manufactured is the total cost incurred in the production of finished goods, including direct materials, direct labor, and manufacturing overhead. To calculate the cost of goods manufactured, we start with the beginning work in process inventory, add total manufacturing costs incurred in the period (direct materials, direct labor, and manufacturing overhead), and subtract the ending work in process inventory. Therefore, Choice B is correct.

Cost of Goods Manufactured Is Equal to