Chapter 18, Problem P18.30APGA

To determine

Direct material purchased: It is the amount of raw material that is purchased from the supplier. It is added to the opening inventory to calculate the amount of raw material consumed.

Cost of goods manufactured: The sum total of direct cost to manufacture a product is called the cost of goods manufactured. It is calculated by using the statement for calculation of the cost of goods manufactured.

Cost of goods sold: The expense which is incurred to produce the goods to be sold is called cost of goods sold. It also takes into account the adjustments of opening and closing stock of finished goods.

1.

Direct material purchased.

To determine

2.

Cost of goods sold.

To determine

3.

Cost of goods manufactured.