It is the expense measured by the cost of the finished goods sold during a period of time.
John Manufacturing Company, a manufacturer of soda bottles, had the following inventory balances at the beginning and end of 2018.
During 2018, the company purchased $1 000 000 of raw material and direct labor incurred of $1 600 000. Manufacturing overhead costs were as follows:
- Prepare Cost of goods manufactured statement
- Prepare cost of goods sold statement.
preparation of Cost of goods manufactured statement
Preparation of Cost of goods sold statement