Question

Describe the relations among the income statement, the schedule of cost of goods manufactured, and a detailed listing of factory overhead costs.

Short answer

The cost of goods sold is determined using the cost of goods manufactured schedule, which is then used to determine corporate expenses on the income statement.

Step-by-step solution

Meaning of Schedule of Cost of Goods Manufactured

The total costs incurred during the production process are listedin a cost schedule for manufactured goods. The cost of products manufactured during the period includes the initial work.

Describing the relations among the income statement, the schedule of cost of goods manufactured, and a detailed listing of factory overhead costs

The revenue and expense breakdown for the year is provided in the income statement. The cost of goods manufactured is a line item calculated as part of the cost of goods sold. The final figure on the cost of manufactured goods is determined and reported. A component line item that merely displays the entire factory overhead cost for the period is frequently included in the schedule.