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8 Cards in this Set
- Front
- Back
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Normal Spoilage |
included in COGS as routine cost of business |
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Abnormal Spoilage |
Considered period cost and not COGS |
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Retail/Wholesale Cost of goods sold Calculation |
+ Beginning Inventory + Purchases (net) = Goods Available for Sale − Ending Inventory - reported on the B.S. = Cost of Goods Sold - appears as a line item on the Income Statement |
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3 inventories maintained with Manufacturing Companies |
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Cost of goods Manufactured Schedule |
This schedule calculates the dollar value of the goods that were completed during the period and transferred to finished goods. It is primarily an analysis of the Work-In-Process account (Beginning Balance + Total Manufacturing Costs − Ending Balance = Cost of Goods Manufactured), but it is sometimes complicated by calculations related to the Direct Materials Inventory |
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Direct Materials Inventory Calculation
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+ Beg. Direct Materials
+ Purchases (net) = Direct Materials Available for Use − Ending Direct Materials = Direct Materials Used -> to Direct Materials line on schedule of cost of goods manufactured |
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Cost of goods Manufactured Schedule Calculation |
+ Beg. Value WIP + Current Period Additions: + Direct Materials* + Direct Labor + Overhead − Ending Value WIP = Cost of Goods Manufactured -> to additions to Finished Goods Inventory |
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Schedule of Cost of Goods Sold |
Beginning Finished Goods + Cost of Goods Manufactured* Goods Available for Sale − Ending Finished Goods = Cost of Goods Sold -> appears as a line item on the Income Statment |
