A cost of goods manufactured statement should be prepared before the income statement has been prepared.

Question

Quizplus · Accepted Answer

The cost of goods manufactured statement is used to determine the cost of producing the goods that were sold during the period. This information is needed in order to calculate the cost of goods sold on the income statement, which is an important expense item that affects the calculation of net income. Therefore, the cost of goods manufactured statement should be prepared before the income statement.

A Cost of Goods Manufactured Statement Should Be Prepared Before