Assuming a separate schedule of cost of goods manufactured, which of the following is found on a manufacturer's income statement?
A) direct labour
B) direct materials
C) work-in-process
D) cost of goods sold

Question

Quizplus · Accepted Answer

Cost of goods sold is found on a manufacturer's income statement, as it represents the total cost of the products produced and sold during the given period. Direct labour and direct materials are part of the cost of goods manufactured, which is a separate schedule used to calculate the cost of inventory produced during the period. Work-in-process is also part of the cost of goods manufactured and is not directly reported on the income statement.

Assuming a Separate Schedule of Cost of Goods Manufactured, Which