Chapter 18, Problem 22DQ

To determine

Income Statement:

The statement which is concerned with all the revenue earned and expenses incurred by a company during a particular business period and determination of profit is called an income statement.

Schedule of cost of goods manufactured:

A schedule of cost of goods manufactured four components; raw materials, labor cost, overhead cost and work in process which determines the cost of goods manufactured.

Factory Overhead:

The indirect expense which facilitates the manufacturing process is called factory overhead cost.

Describe the relations among the income statement, the schedule of cost of goods manufactured, and a detailed listing of factory overhead costs.