The direct costs of producing the goods sold by a company are referred to as the cost of goods sold (COGS). This figure includes the cost of the materials and labor directly used in the production of the goods. It does not include indirect expenses such as distribution and sales force costs. To record: Calculation of cost of goods sold

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Chapter 5, Problem 5.19SE

To determine

Introduction: The direct costs of producing the goods sold by a company are referred to as the cost of goods sold (COGS). This figure includes the cost of the materials and labor directly used in the production of the goods. It does not include indirect expenses such as distribution and sales force costs.

To record: Calculation of cost of goods sold

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