
Concept explainers
Introduction: We can separate expenses of a company into different categories. These are termed as classification of costs. Some of them are fixed costs , variable costs , direct costs , indirect costs , semi variable costs etc.
1.To classify :
2.
Introduction: The cost of goods manufactured is referring to the manufacturing cost that are associated with goods finished during the period. Even though we don't see cost of goods manufactured in any financial statements , it helps us to find out the cost of goods sold during the particular period.
To calculate: The cost of goods manufactured
3.
Introduction: Cost of goods sold can be found in the income statement prepared by the manufacturing company. It is the direct cost that is attributable to the production of the goods sold in a company.
To prepare : The cost of the goods sold section in a partial income statement.

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Chapter 18 Solutions
Loose Leaf for Fundamental Accounting Principles
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