Asked by Cassie Trucchio on Jul 20, 2024
Verified
Factory Supplies Expense, Depreciation Expense-Factory, and Heat, Light, and Power-Factory appear on which section of the worksheet?
A) Statement of cost of goods manufactured
B) Statement of Stockholders' Equity
C) Income statement
D) Statement of cost of goods sold
Factory Supplies Expense
The cost associated with supplies used in the production process within a manufacturing facility.
Depreciation Expense-Factory
The portion of a factory's fixed assets' cost allocated as an expense during a fiscal period, due to wear and tear.
- Identify and group various manufacturing inventory examples as shown on financial statements.
- Describe the concept and calculation of cost of goods manufactured and how it relates to the income statement and balance sheet.
Verified Answer
NC
Nathaniel CastilloJul 26, 2024
Final Answer :
A
Explanation :
These expenses are directly associated with the manufacturing process and are included in the calculation of the cost of goods manufactured. They are not part of the income statement in the traditional sense (like selling and administrative expenses), nor are they related to stockholders' equity or the cost of goods sold statement directly. The cost of goods manufactured statement summarizes the total production costs, making it the correct place for these expenses.
Learning Objectives
- Identify and group various manufacturing inventory examples as shown on financial statements.
- Describe the concept and calculation of cost of goods manufactured and how it relates to the income statement and balance sheet.
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