The cost of goods manufactured is

Question

Quizplus · Accepted Answer

The cost of goods manufactured refers to the total amount of costs incurred during the manufacturing process, which includes direct materials, direct labor, and manufacturing overhead. This cost is recorded as a debit to the Finished Goods Inventory account once the goods are completed and ready to be sold. Options A and D are incorrect as the cost of goods sold is a different account, which refers to the total cost of goods sold during a specific period. Option B is incorrect as the cost of goods manufactured does not relate to cash or accounts receivable.

The Cost of Goods Manufactured Is