Cost of goods manufactured appears on the income statement of a manufacturing company in a similar manner as purchases appear on the income statement of a merchandising company.

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Cost of goods manufactured represents the total cost of producing the goods that were sold during the period and is reported on the income statement of a manufacturing company. This is similar to purchases for a merchandising company, which represents the cost of buying goods to be sold and is also reported on the income statement.

Cost of Goods Manufactured Appears on the Income Statement of a Manufacturing