Cost of goods sold statement
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.
John Manufacturing Company, a manufacturer of soda bottles, had the following inventory balances at the beginning and end of 2018.
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:
Sales revenue was $4 105 000 for the year. Selling and administrative expenses for the year amounted to $110 000.
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preparation of Cost of goods manufactured statement
Preparation of Cost of goods sold statement