Chapter 18, Problem 6BTN

To determine

1)

Concept Introduction:

Schedule of Cost of Goods Manufactured:

• The Schedule of Cost of Goods Manufactured is used to compute the cost of producing goods for a particular period.

• It comprises of Cost of Materials, Labor and Overhead attributable to goods manufactured.

• Cost of goods manufactured is the total cost of producing goods that are later sold to realize revenues. It includes direct and indirect materials, labor and overhead.

To Prepare:

Schedule of Cost of Goods Manufactured

To determine

3)

Introduction:

Cost of Goods Sold

• The Schedule of Cost of Goods sold is used to compute the cost of goods sold in a particular period.

• Cost of goods sold comprises of the cost of Goods manufactured along with the effect of the change in inventory of the finished goods.

• The cost of goods manufactured is a sum of the direct material, labor and manufacturing overhead attributable to the product.

To Compute:

Cost of Goods Sold