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<p>a. Movement in Work-In-Process during the period.</p> <p>b. Movement in Raw Material Inventory during the period.</p> <p>c. Movement in Finished Goods Inventory during the period.</p> <p> </p>
The answer is C : Movement in Finished Goods Inventory during the period.
Firstly, If Movement in Finished Goods Inventory during the period is taken it becomes cost of goods sold and not manufacturing.
Secondly,Finished Stock doesn't require any further manufacturing Cost as it is ready for sale.
Answer C. ie:-Movement in finished goods inventory does not require further manufacturing cost.
Joshi Mathew
CIA
(C) "Movement in Finished Goods" is not taken into account when calculating Cost of Goods Manufactured.
Explanation:
Movement in Raw Material + Conversion Cost + Movement in WIP = Cost of Goods Manufactured
If we add "Movement in FG" in Cost of Goods Manufactured we will get "Cost of Goods Sold"
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