Financial Act Chpt 6 Notes

Includes costs for raw materials direct labor and

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Unformatted text preview: ompleted. Includes costs for raw materials, direct labor, and overhead. • Raw Materials: Direct materials that go into production process • Direct labor: Could be considered "touch labor"; amount paid to workers directly producing the product • Overhead: All other manufacturing costs, excluding raw materials and direct labor • Finished Goods: Goods are finished in the production process, and ready for sale. How is inventory valued? Initially recorded at cost. Includes all necessary costs to get the inventory ready for its intended sale. (costs of production, shipping, inspection, etc.) Cost of Goods Sold: Costs of inventory recorded as an expense at time inventory is...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida.

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