Cost of goods manufactured will usually include:
A) only costs incurred during the current period.
B) only direct labor and direct materials costs.
C) some costs incurred during the prior period as well as costs incurred during the current period.
D) some period costs as well as some product costs.

Question

Quizplus · Accepted Answer

The cost of goods manufactured includes all the costs incurred during the current period for the production of goods, as well as some costs incurred during the prior period, such as the beginning inventory of raw materials and work-in-progress. Therefore, option A and B are incorrect. Option D is also incorrect because period costs are not included in the cost of goods manufactured.

Cost of Goods Manufactured Will Usually Include