Finished Goods Inventory consists of which of the following costs?

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Finished goods inventory includes all costs associated with production, including direct materials, direct labor, and manufacturing overhead. Choice A is incorrect because it does not include all manufacturing costs, as nonmanufacturing overhead costs are not included in finished goods inventory. Choice B is incorrect because it only includes a subset of manufacturing costs, specifically direct labor and conversion costs. Choice C is incorrect because it only includes direct materials and manufacturing overhead, leaving out direct labor costs.

Finished Goods Inventory Consists of Which of the Following Costs