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
• 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.
- Spring '08
- Financial Accounting