Chapter 18, Problem E18.23E

To determine

Concept introduction

Cost sheet is the statement of cost of an organization which includes the cost of goods manufactured, cost of goods available for sale and cost of goods sold.

Cost of goods manufactured means all the cost incurred for the purpose of manufacturing the goods and ready for sale. It includes the factory expenses, material cost, labor cost and overhead expenses.

Cost of goods sold is the cost of those goods that has been sold by the organization during the said particular period. It only includes the sale portions cost and rest cost is considered in closing inventory.

Requirement 1

To calculate

We need to calculate the cost of goods manufactured.

To determine

Requirement 2:-

To calculate

We need to calculate the cost of goods sold.