Question on: WAEC Accounting - 2012
The addition of prime cost and factory overhead is
A
total factory overheads
B
market value of goods produced
C
cost of goods produced
D
work-in-progress
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Correct Option: C
The cost of goods manufactured equation is calculated by adding the total manufacturing costs; including all direct materials, direct labor (prime cost) and factory overhead; to the beginning work in process inventory and subtracting the ending goods in process inventory.
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