The cost of a manufactured product generally consists of which of the following

Question

The cost of a manufactured product generally consists of which of the following costs? direct materials cost and direct labor cost only direct materials cost and factory overhead cost only direct labor cost, direct materials cost, and factory overhead cost direct labor cost and factory overhead cost only what is the purpose of the statement of cost of goods manufactured? to determine the amounts transferred to finished goods to determine the ending materials inventory all of these to determine the ending work in process inventory

Explanation / Answer

1)correct option is "C" -Direct labor cost ,direct material cost and factory overhead cost.

Cost of goods manufactured cost involves all cost that are directly related to manufacturing of product .

2) correct option is "A" -to determine the amounts transfered to finished goods .

as and when goods are manufactured ,the completed cost of goods manufactured are transfered to finished goods inventory .

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