The format for the cost of goods manufactured statement is direct materials + direct labour + factory overhead + ????????__________ - work in process at end.

Question

Quizplus · Accepted Answer

The missing item in the equation is the cost of goods started or begun during the period. This is calculated by adding the work in process at the beginning of the period to the total manufacturing costs incurred during the period (direct materials, direct labor, and factory overhead). The sum of these items then subtracting the work in process at the end of the period gives the cost of goods manufactured. Therefore, the correct choice is work in process at start, which represents the beginning inventory of partially completed units.

The Format for the Cost of Goods Manufactured Statement Is