Cost of goods manufactured equals
A) the cost of indirect materials used in production.
B) the product cost of goods completed during the current period.
C) the period costs for the current period.
D) the cost of direct materials and direct labor used during the current period.

Question

Quizplus · Accepted Answer

Cost of goods manufactured (COGM) represents the total cost of goods completed during the current period. It includes direct materials, direct labor, and manufacturing overhead costs. COGM is calculated by adding the beginning work in process inventory to the total manufacturing costs for the period and subtracting the ending work in process inventory.

Cost of Goods Manufactured Equals