A merchandising company includes cost of goods purchased in its calculation of cost of goods sold.What is the counterpart used by a manufacturing company?
A)ending inventory
B)beginning inventory
C)cost of goods available for sale
D)cost of goods manufactured

Question

Quizplus · Accepted Answer

A manufacturing company calculates its cost of goods sold by first calculating its cost of goods manufactured. This includes the cost of direct materials, direct labor, and manufacturing overhead for the goods produced during the period.

A Merchandising Company Includes Cost of Goods Purchased in Its