Cost of goods sold statement

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on June 22, 2021

It is the expense measured by the cost of the finished goods sold during a period of time.
Cost of goods sold statement

Example:

John Manufacturing Company, a manufacturer of soda bottles, had the following inventory balances at the beginning and end of 2018.
Cost of goods sold statement example
During 2018, the company purchased $1 000 000 of raw material and direct labor incurred of $1 600 000. Manufacturing overhead costs were as follows:
Cost and its types - Example 1
Sales revenue was $4 105 000 for the year. Selling and administrative expenses for the year amounted to $110 000.
Required:

  • Prepare Cost of goods manufactured statement
  • Prepare cost of goods sold statement.

Solution:
preparation of Cost of goods manufactured statement
Cost of goods manufactured statement example solution
Preparation of Cost of goods sold statement
Cost of goods sold statement example solution

Leave a Comment