Question

What costs are included in a schedule of cost of goods manufactured in cost accounting?

A) Direct materials used
B) Direct labor
C) Manufacturing overhead
D) All of the above

Answer 1

A schedule of cost of goods manufactured includes direct materials used, direct labor, and manufacturing overhead. The correct option is D.

Step-by-step explanation:

In cost accounting, a schedule of cost of goods manufactured includes the following costs:

1. Direct materials used: This refers to the cost of the materials that are directly incorporated into the finished product. Examples include the cost of wood in furniture manufacturing or fabric in clothing manufacturing.
2. Direct labor: This includes the cost of labor that is directly involved in the production process. For instance, the wages of employees operating machinery or assembling products.
3. Manufacturing overhead: This includes all other indirect costs of production, such as factory rent, utilities, and indirect labor.

Therefore, the correct answer is D) All of the above. The correct option is D.