How is the cost of goods manufactured calculated?
A)total product costs incurred during the current period + beginning work in process − ending work in process
B)direct materials cost + direct labour cost + overhead cost
C)sales − cost of goods sold
D)gross margin - other expenses

Question

Quizplus · Accepted Answer

Cost of goods manufactured is calculated by adding total product costs incurred during the current period to the beginning work in process and then subtracting the ending work in process. This formula takes into account all direct materials, direct labor, and overhead costs incurred in the production process.

How Is the Cost of Goods Manufactured Calculated