Question

In the Schedule of Cost of Goods Manufactured, Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory − Ending work in process inventory.
A. True
B. False

Answer 1

Answer:

A. True

Explanation:

The formula to compute the cost of goods manufactured is shown below:

Cost of goods manufactured = Opening work in process + Manufacturing cost - ending work in process

here the manufacturing cost refers to the direct material cost, direct labor cost and the manufacturing overhead cost i.e. indirect cost that is required to manufacturing a product

hence, the given statement is true