A manufacturing company reports cost of goods manufactured as a(n)
A) current asset on the balance sheet.
B) administrative expense on the income statement.
C) component in the calculation of cost of goods sold on the income statement.
D) component of the raw materials inventory on the balance sheet.

Question

Quizplus · Accepted Answer

Cost of goods manufactured is a direct cost incurred in the production of goods and is included in the calculation of cost of goods sold on the income statement. It is not a current asset on the balance sheet or an administrative expense. It may be included in the calculation of raw materials inventory, but it is not a component of it.

A Manufacturing Company Reports Cost of Goods Manufactured as A(n)