The "cost of finished goods manufactured," which appears on the bottom of the Schedule of Finished Goods Manufactured,flows to the balance sheet and is reported as the ending inventory balance.

Question

Quizplus · Accepted Answer

The "cost of finished goods manufactured" flows into the Cost of Goods Sold section of the income statement, not directly to the balance sheet as ending inventory. Ending inventory is calculated separately and includes the cost of finished goods not yet sold.

The "Cost of Finished Goods Manufactured," Which Appears on the Bottom