The addition of prime cost; indirect cost and opening work-in-progress less the closing work-in-progress will result in cost of?

A. goods available for sale
B. goods sold
C. goods manufactured
D. materials put into production

Correct Answer:

Option C – goods manufactured

Explanation

The cost of goods manufactured equation is calculated by adding the total manufacturing costs; including all direct materials, direct labor, and factory overhead; to the beginning work in process inventory and subtracting the ending goods in process inventory.