In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?
A) Finished goods
B) Cost of merchandise available
C) Cost of goods manufactured
D) Work in process completed

Question

Quizplus · Accepted Answer

The cost of goods manufactured (COGM) replaces purchases in the cost of goods section of a manufacturing company's income statement. COGM represents the cost of raw materials, direct labor, and overhead used to create the finished goods that the company has produced during the period.

In the Income Statement of a Manufacturing Company, What Replaces