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Raw Materials Inventory
Raw materials inventory represents the cost of materials that are in stock but have not yet been processed into finished goods.
Direct Labor Cost
The compensation and associated costs for workers directly engaged in the manufacturing of products or services.
Manufacturing Overhead
All indirect costs associated with the production process, such as utilities, maintenance, and salaries of supervisors.
Total Manufacturing Costs
The sum of direct materials, direct labor, and manufacturing overhead incurred in producing goods.
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