This schedule reports the computation of cost of goods manufactured for the period. It begins by showing the period’s costs for direct materials, direct labor, and overhead and then adjusts these numbers for the beginning and ending inventories of the work in process to yield cost of goods manufactured.

Prepare a schedule of cost of goods manufactured and explain its purpose and links to financial statements.

This schedule reports the computation of cost of goods manufactured for the period. It begins by showing the period’s costs for direct materials, direct labor, and overhead and then adjusts these numbers for the beginning and ending inventories of the work in process to yield cost of goods manufactured.

 

Knowledge Check 01
 
Which of the following are sections of the Schedule of Cost of Goods Manufactured?

 

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