Manufacturing costs are eventually reported on
A) the income statement only.
B) the balance sheet only.
C) the income statement as cost of goods sold.
D) the balance sheet as cost of goods sold.

Question

Quizplus · Accepted Answer

Manufacturing costs are reported as cost of goods sold on the income statement, which reflects the costs of producing and selling the products. The balance sheet reports the value of inventory, which includes the manufacturing costs of goods that have not yet been sold. Therefore, option A and B are incorrect. Option D is also incorrect as cost of goods sold is not an asset reported on the balance sheet.

Manufacturing Costs Are Eventually Reported on