00:01
Hello, in this video, i will be answering the following of according to which of these formulas, the cost of goods manufactured computed.
00:11
So, first let's figure out what is the cost of manufactured goods, and how would we find that? so, let's see what color i should do.
00:27
Let's do orange, orangey brown color.
00:31
Okay, so the cost of goods is the total direct costs of production, of producing goods sold by a company.
01:06
Alright, so from here, we know that the cost of goods is equal to the direct materials, that is not high -spot materials, materials plus the cost of direct labor, plus the manufacturing overhead, plus the beginning work process, beginning, beginning work and process inventory minus the ending work and process.
02:16
That is the entirety of cost of goods manufactured.
02:23
So now we can look at our answer choices.
02:27
We know that it's going to be the total for the manufacturing goods and we know that it's going to have the beginning and ending work.
02:38
So total for menu beginning and ending.
02:41
All right.
02:45
So let's go ahead and read them off.
02:46
So the total of manual goods, that is correct.
02:49
The beginning finished goods...