Chapter 18, Problem 10QS

To determine

Concept Introduction: Cost of goods sold-

Cost of goods sold refers to the direct cost which is assigned to the cost of producing the goods sold. It includes cost of direct material, labor used in the production of goods and services. It is the total cost of production which is incurred to manufacture the product and transfer to finished goods for sale.

Cost of goods manufactured-

Cost of manufactured goods represents total cost pertaining to finished goods produced in the accounting period. The manufacture first uses the raw material and with the help of direct labor and manufacturing overheads converts them into finished goods.

To Compute:

To compute the cost of goods sold.