The statement of cost of goods manufactured includes:
A)Office supplies used in accounting office.
B)Deprecation of factory building.
C)Salary of sales manager.
D)Rent paid on finished goods warehouse.

Question

Quizplus · Accepted Answer

The cost of goods manufactured includes direct materials, direct labor, and manufacturing overhead. Depreciation of the factory building falls under manufacturing overhead and is included in the cost of goods manufactured. The other choices listed (office supplies used in accounting office, salary of sales manager, rent paid on finished goods warehouse) are not included in the cost of goods manufactured.

The Statement of Cost of Goods Manufactured Includes