The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Question

Quizplus · Accepted Answer

The cost of goods manufactured statement summarizes the total manufacturing costs incurred during the period and the changes in work-in-progress inventory to calculate the cost of goods completed and transferred to finished goods inventory. This information is then used in the income statement to calculate the cost of goods sold and ultimately, the gross profit. Therefore, the statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

The Statement of Cost of Goods Manufactured Is an Extension