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chapter 2 formulas

QuestionAnswer
Direct materials used Beginning direct materials + Purchases of direct materials (including freight in or transportation) - Ending direct materials
= Total manufacturing cost incurred during the period (e.g., month, quarter, or year) Direct materials used [from (1)] + Direct labor + Manufacturing overhead (which includes indirect materials and indirect labor)
= Cost of goods manufactured Beginning work in process + Total manufacturing cost incurred during the period [from (2)] - Ending work in process
= Cost of goods sold Beginning finished goods + Cost of goods manufactured [from (3)] - Ending finished goods
Created by: Jgoulas
 

 



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