Asked by Jessica Colley on May 03, 2024
Verified
The schedule of cost of goods manufactured contains three elements of product costs-direct materials, direct labor, and manufacturing overhead-and it summarizes the portions of those costs that remain in ending Work in Process inventory and that are transferred out of Work in Process into Finished Goods.
Schedule of Cost of Goods Manufactured
A detailed statement listing the total costs incurred in the production process to arrive at the cost of goods manufactured.
Work in Process Inventory
Items in a manufacturing process that are in progress but not yet completed.
- Understand the process of preparing the Cost of Goods Sold (COGS) schedule and identify its elements.
- Comprehend the structure of the Cost of Goods Manufactured schedule and how to compute the total available raw materials.
- Identify and learn how various transactions are recorded and reported in manufacturing and inventory accounts.
Verified Answer
AS
Abdulhafeth SartawiMay 06, 2024
Final Answer :
True
Explanation :
This statement is true. The schedule of cost of goods manufactured shows the total cost of goods that were completed during a particular period, which includes direct materials, direct labor, and manufacturing overhead. It also shows the portion of these costs that remain in ending Work in Process inventory and the portion that is transferred out of Work in Process into Finished Goods.
Learning Objectives
- Understand the process of preparing the Cost of Goods Sold (COGS) schedule and identify its elements.
- Comprehend the structure of the Cost of Goods Manufactured schedule and how to compute the total available raw materials.
- Identify and learn how various transactions are recorded and reported in manufacturing and inventory accounts.
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