When preparing a cost of goods manufactured statement from the following information, what is the total cost of goods manufactured?
$$\begin{array} { l c }
\text { Direct materials } & \$ 12 \
\text { Advertising expenses } & 8 \
\text { Indirect labour } & 2 \
\text { Indirect materials } & 4 \
\text { Direct labour } & 5 \
\text { Other manufacturing overhead } & 1
\end{array}$$

Question

When preparing a cost of goods manufactured statement from the following information, what is the total cost of goods manufactured?
$$\begin{array} { l c } 
\text { Direct materials } & \$ 12 \
\text { Advertising expenses } & 8 \
\text { Indirect labour } & 2 \
\text { Indirect materials } & 4 \
\text { Direct labour } & 5 \
\text { Other manufacturing overhead } & 1
\end{array}$$

Quizplus · Accepted Answer

The total cost of goods manufactured is calculated by adding direct materials, direct labor, and manufacturing overhead (which includes indirect labor, indirect materials, and other manufacturing overhead). Thus, $12 (direct materials) + $5 (direct labor) + $2 (indirect labor) + $4 (indirect materials) + $1 (other manufacturing overhead) = $24.

When Preparing a Cost of Goods Manufactured Statement from the Following