Schedule of Cost of Goods Manufactured: Income Statement: Cost
The following selected account balance for the year ended December 31 are provided for
Insurance, factory equipment
Depreciation, sales equipment
Rent factory building
Cleaning supplies, factory
Depreciation, factory equipment
Selling and administrative salaries
Purchases of raw materials
Inventory balances at the beginning and end of the year were as follows:
The total manufacturing costs for the year were $675,000; the goods available for sale
totaled $720,000; and the cost of goods sold totaled $635,000.
Prepare a schedule of cost of goods manufactured and then the cost of goods sold
section of the company’s income statement for the year.
Let’s first take a look at how to prepare the Schedule of Cost of Goods Manufactured and