Service income statement Merchandising Company Product Costs Period Costs Revenues Revenues-Costs that include inventory- non-manufacturing costs-Costs of Services Sold-Costs of Goods Sold-manufacturing costs-marketing and administrative =Gross Margin =Gross Margin -become an expense when the products are sold-Marketing and administrative costs-Marketing and Administrative Costs =operating profit =operating profit Inventory Accounts Balance Sheet Cost of Goods Sold Statement Beg FG inventory Jan 1 Direct Materials Inventory Work-in-Process Inventory Finished Goods Inventory + Cost of Goods Manufactured = FG available for sale Beg. RM inventory Beg. WIP Inventory Beg FG inventory-Ending FG inventory +Purchases +Direct Materials transferred from raw materials +Cost of Goods completed and transferred from WIP =Costs of Goods Sold =RM available for production +Direct labor =Goods available for sale-Ending RM inventory +Manufacturing Overhead-ending FG inventory =Raw Materials transferred to WIP = Total Manufacturing costs =cost of goods sold-Ending WIP Inventory = Costs of Goods Manufactured
This is the end of the preview.
access the rest of the document.