The Cost of Goods Manufactured Is Computed by

question 45

Multiple Choice

The cost of goods manufactured is computed by

• A) adding raw materials used and direct labor to manufacturing overhead.
• B) deducting the ending work in process inventory from the sum of the total manufacturing cost and the beginning work in process inventory.
• C) deducting the ending finished goods inventory from the beginning finished goods inventory.
• D) adding operating expenses to direct labor costs.

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Definitions:

Land Improvements

Enhancements made to a piece of land to increase its value or functionality, such as landscaping, fencing, and adding utilities.

Intangible Assets

Non-physical assets such as patents, copyrights, trademarks, and goodwill.

Trademark

A recognizable sign, design, or expression which identifies products or services of a particular source from those of others, legally registered to claim exclusive rights.

Intangible Assets

Non-physical assets that possess value, such as trademarks, patents, goodwill, and copyrights.