Chapter 13, Problem 13.10Q

To determine

Introduction: The interim report covers a time period of less than a year, interim report can be far a week, a month, a quarter or more than one quarter. Many companies prepare monthly financial statements for internal management purposes. Publicly held companies are required to publish quarterly reports. A quarterly report is simply a smaller version of the annual report. Form 10-Q is the SEC’s quarterly report and, this quarterly report must be filed within 35 days after the end of each of the first three quarters.

The rule for computing cost of goods sold and inventory on interim basis.