Final answer:
The result of the computation is the cost of goods manufactured, which includes direct material, labor, manufacturing overhead, and adjustments for inventory changes.
Step-by-step explanation:
The cost flow computation of direct materials cost + direct labor cost + manufacturing overhead cost + an adjustment for the change in work process inventory results in the cost of goods manufactured (COGM). COGM is a critical component in calculating the cost of goods sold (COGS) but represents the total cost directly involved in producing goods before they are sold.
These costs include the variable costs such as wages and salaries associated with labor and costs of raw materials, which vary with the level of production. The adjustment for changes in work in process inventory accounts for any unsold inventory and helps to accurately reflect the cost associated with production generated within a specific period.