Cost of Goods Manufactured: The sum of all the costs incurred to manufacture a product is called cost of goods manufactured. It is presented in the income statement. Income Statement: It can be known as “ Profit and Loss statement” or “Revenue statement” or “Operating statement”. It is the financial statement of the company which provides the information about revenues and expenses of a specific period. It computes the net profit or net loss of the company for a particular period and represents the financial performance of the company. To prepare: (a) Cost of goods manufacture schedule and (b) Income statement through gross profit.

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Chapter 19, Problem 19.12E

To determine

Cost of Goods Manufactured: The sum of all the costs incurred to manufacture a product is called cost of goods manufactured. It is presented in the income statement.

Income Statement: It can be known as “Profit and Loss statement” or “Revenue statement” or “Operating statement”. It is the financial statement of the company which provides the information about revenues and expenses of a specific period. It computes the net profit or net loss of the company for a particular period and represents the financial performance of the company.

To prepare: (a) Cost of goods manufacture schedule and (b) Income statement through gross profit.

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