The Cost of Goods Sold section of the income statement for a manufacturing business shows the balance of the work in process inventory.

Question

Quizplus · Accepted Answer

The Cost of Goods Sold section includes the cost of goods that have been finished and sold during the period, not the balance of work in process inventory. The work in process inventory is typically reported as a separate line item in the balance sheet.

The Cost of Goods Sold Section of the Income Statement