What is the definition of cost of goods manufactured?
A)the cost of direct materials used in production
B)the product cost of goods completed during the current period
C)the product cost of goods sold during the current period
D)the cost remaining in ending work-in-process inventory

Question

Quizplus · Accepted Answer

Cost of goods manufactured refers to the total cost incurred during the production of finished goods during a specific period. It includes the cost of direct materials used, direct labor, and manufacturing overhead. The cost of goods completed during the current period is the product cost that is transferred from the manufacturing plant to the finished goods inventory. Therefore, option B is the correct definition of cost of goods manufactured. Option A refers only to the cost of direct materials, whereas option C refers to the cost of goods sold, and option D refers to the cost remaining in the ending work-in-process inventory.

What Is the Definition of Cost of Goods Manufactured