
Concept explainers
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
• 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
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

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Chapter 18 Solutions
Connect Access Card for Fundamental Accounting Principles
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