Concept:Manufacturing costs are grouped into direct costs and indirect factory overheads.
Adding factory overheads to prime cost gives the production cost of goods produced.
Explanation:Prime cost is the total of direct materials, direct labour and direct expenses.
Factory overheads are indirect manufacturing expenses such as rent, power and indirect wages.
When these are added together, the result is factory cost or production cost.
In a simple manufacturing account, this amount is described as the cost of goods produced.
Prime cost+factory overheads=cost of goods produced.
This is not the market value of goods, total factory overheads alone, or work-in-progress.
Answer:C. cost of goods produced.