Which of the following statements regarding the schedule of cost of goods manufactured and sold is correct?
A) The schedule is an internal document that is not presented with the company's financial statements.
B) The schedule of cost of goods manufactured and sold shows the amount of cash paid for raw materials.
C) The schedule of cost of goods manufactured and sold reports the amount of direct raw materials used during the period.
D) The schedule is an internal document that is not presented with the company's financial statements, and, in addition, the schedule of cost of goods manufactured and sold reports the amount of direct raw materials used during the period.

Question

Quizplus · Accepted Answer

The schedule of cost of goods manufactured and sold is an internal document that summarizes the total cost of production for a period and shows the cost of goods sold. It includes the cost of direct materials, direct labor, and manufacturing overhead. Therefore, option D is the correct choice as it mentions both statements that are true. Option A is incorrect because the schedule is often included as part of the financial statements. Option B is incorrect as the schedule shows the amount of raw materials used, not the amount paid for them. Option C is also incorrect because the schedule reports the amount of direct raw materials used, not simply the amount of raw materials purchased.

Which of the Following Statements Regarding the Schedule of Cost