Chapter 19, Problem 19.8E

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.

Cost of Goods Sold: It includes direct material, direct labor, direct expenses, factory overheads, office and administrative overheads and adjustment of all kind of inventory in hand at beginning and end of the period. It is reduced from total sales to calculate the net profit of company.

To determine: (a) Cost of goods manufactured and (b) cost of goods sold.