Which of the following schedules is prepared to maintain accuracy in computing product costs?
A) The schedule of the cost of goods manufactured
B) The schedule of the finished goods
C) The schedule of the goods under production
D) The schedule of overhead
E) None of the schedules listed here.

Question

Quizplus · Accepted Answer

The schedule of the cost of goods manufactured is prepared to maintain accuracy in computing product costs. It summarizes the total cost of direct materials, direct labor, and manufacturing overhead that were incurred and added to the work-in-process inventory during the period, and it calculates the cost of goods manufactured for the period. This information is essential for accurately determining the cost of goods sold and gross profit for the period. The other schedules listed (the schedule of the finished goods, the schedule of the goods under production, and the schedule of overhead) may be helpful in the management of inventories or overhead costs, but they do not directly contribute to accuracy in computing product costs.

Which of the Following Schedules Is Prepared to Maintain Accuracy