How does a manufacturing company report cost of goods manufactured?
A)as a current asset on the balance sheet
B)as a component of the raw materials inventory on the balance sheet
C)as a component in the calculation of cost of goods sold on the income statement
D)as an administrative expense on the income statement

Question

Quizplus · Accepted Answer

Cost of goods manufactured is reported as a component in the calculation of cost of goods sold on the income statement. This represents the cost of inventory that has been manufactured during the reporting period and is ready for sale. It includes direct materials, direct labor, and manufacturing overhead costs.

How Does a Manufacturing Company Report Cost of Goods Manufactured