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
Correct Answer: Option C
Explanation
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.