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Chapter 33. Cost of Goods Reporting. Prepared by Diane Tanner University of North Florida. Product Costs on Balance Sheet. Balance Sheet Inventories: Raw Materials………….$xx Work in Process………. xx Finished Goods……….. xx. Product Costs.
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Chapter 33 Cost of Goods Reporting Prepared by Diane Tanner University of North Florida
Product Costs on Balance Sheet Balance Sheet Inventories: Raw Materials………….$xx Work in Process………. xx Finished Goods……….. xx Product Costs Until sold, inventoriable costs are carried in one of three inventory accounts on the balance sheet.
Income Statement Sales Revenue………………. $ xx Cost of Goods Sold………….. xx Product Costs on the Income Statement Matching concept applied Finished Goods Cost of Goods Sold Balance Sheet Income Statement
Cost of Goods Manufactured Beginning WIP Ending WIP Direct Materials Cost of Products Completed Finished Goods Direct Labor Mfg. Overhead Beginning Work in Process + Total Manufacturing Costs incurred this period – Ending Work in Process = Cost of Goods Manufactured CGM
Beginning Finished Goods + Cost of Goods Manufactured – Ending Finished Goods = Cost of Goods Sold Cost of Goods Sold Comparison Manufacturing Merchandising • Beginning Inventory • + Purchases • Ending Inventory • = Cost of Goods Sold
