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 and transferred to finished goods.
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 product cost of goods completed during the current period and transferred to finished goods inventory. COGM includes direct materials, direct labor, and manufacturing overhead costs incurred during the period. Therefore, option B is the correct answer. Options A, C, and D are not correct as they only represent a portion of the COGM calculation.

Cost of Goods Manufactured Equals