Describe the schedule of cost of goods manufactured and sold. What information does it include, and how is it used?
What will be an ideal response?
Answers will vary
The schedule of cost of goods manufactured and sold shows the amount of materials and labor cost incurred and the amount of overhead cost for the period. The total of these three costs is adjusted for the amount of change in work in process, to arrive at the total manufacturing cost incurred for the period. The total manufacturing cost is adjusted for the change in finished goods to calculate the amount of cost of goods sold for the period.
The schedule of cost of goods manufactured and sold must be prepared to support a company's income statement; preparation of the income statement requires information about the amount of cost of goods sold for a period. The schedule may also be useful to managers who are concerned with controlling the costs of producing products.
You might also like to view...
One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is:
A) interest. B) evaluation. C) trial. D) adoption. E) awareness.
According to the text, all of the following are challenges faced in implementing a sampling design in international research EXCEPT:
A) individuals responsible for making or influencing decision may vary. B) in developing an appropriate sampling frame one cannot rely on high-quality secondary data as one can in developed countries. C) equivalence of samples can elude the researcher. D) probability sampling techniques are uncommon overseas. E) non-governmental organizations are needed for implementing the sampling design in some countries of the world.
The following data relate to Rocket Company for the year ended December 31, 2012 . Rocket Company uses the cash basis. Sales on credit $180,000 Cost of inventory sold on credit 130,000 Collections from customers 170,000 Purchase of inventory on credit 140,000 Payment for purchases 150,000 Selling expenses (accrual basis) 20,000 Payment for selling expenses 25,000 Which of the following amounts
represents income for Rocket Company for the year ended December 31, 2012? a. $30,000 b. $5,000 loss c. $40,000 d. $45,000 e. $50,000
Answer the following statements true (T) or false (F)
1. Long-term liabilities can be structured either with an equal principal payment or with an equal total payment. 2. Bonds are short-term debt issued to multiple lenders called bondholders, usually in increments of $1,000 per bond. 3. On the maturity date, the bondholder is paid the face amount of the bond plus the last interest payment. 4. Secured bonds give bondholders the right to take specified assets of the issuer if the issuer fails to pay principal or interest. 5. Debentures are bonds that mature in installments at regular intervals. 6. Debentures are backed only by the goodwill of the bond issuer.