A production cost report aids in preparing an income statement by:
A)providing data for period costs incurred during the period.
B)providing data for various inventory accounts.
C)providing data for cost of goods sold during the period.
D)providing data for revenues generated during the period.

Question

Quizplus · Accepted Answer

A production cost report provides data on the manufacturing costs incurred during the period, including direct materials, direct labor, and manufacturing overhead. This information is used to calculate the cost of goods sold for the period, which is a critical component of the income statement. The report does not provide data for period costs, inventory accounts, or revenues generated.

A Production Cost Report Aids in Preparing an Income Statement