Assume direct materials, direct labour and factory overhead for the period total $450 000. If work in process at the start is $35 000 and work in process at the end is $50 000, the cost of goods manufactured is:

Question

Quizplus · Accepted Answer

The cost of goods manufactured is calculated by adding the total manufacturing costs to the beginning work in process inventory and then subtracting the ending work in process inventory. So, $450,000 + $35,000 - $50,000 = $435,000.

Assume Direct Materials, Direct Labour and Factory Overhead for the Period