Finished goods inventory includes _____.

Question

Quizplus · Accepted Answer

Finished goods inventory includes the total cost of production, which encompasses direct materials, direct labor, and factory overhead. Factory overhead consists of all the costs incurred in the manufacturing process that are not directly tied to the production of a specific product, such as utilities, maintenance, and equipment depreciation. This makes option C correct, as these costs are part of the value of the finished goods.

Finished Goods Inventory Includes _____