JAMB - Accounts Principles Of Accounts (2013 - No. 24)
The addition of prime cost, indirect cost and opening work-in-progress less the closing work-in-progress will result in cost of
goods available for sale
goods sold
goods manufactured
materials put into production
Explanation
The cost of goods manufactured equation is calculated by adding the total manufacturing costs; including all direct materials, direct labor, and factory overhead; to the beginning work in process inventory and subtracting the ending goods in process inventory.
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