Cost of goods sold statement

It is the expense measured by the cost of the finished goods sold during a period of time.

Cost of goods sold statement

Example:

John Manufacturing Company, a manufacturer of soda bottles, had the following inventory balances at the beginning and end of 2018.

Cost of goods sold statement example

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:

Cost and its types - Example 1

Sales revenue was $4 105 000 for the year. Selling and administrative expenses for the year amounted to $110 000.

Required:

  • Prepare Cost of goods manufactured statement
  • Prepare cost of goods sold statement.

Solution:

preparation of Cost of goods manufactured statement

Cost of goods manufactured statement example solution

Preparation of Cost of goods sold statement

Cost of goods sold statement example solution

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