Please explain the difference between Cost of manufactured goods and Cost of goods sold. And what is
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Question:
Please explain the difference between Cost of manufactured goods and Cost of goods sold. And what is their position when calculating costs
Case
Choconut Company is currently calculating costs in one month. Direct labor is $ 220,000, manufacturing overhead is $ 200,000, and direct material is purchased for $ 300,000. Inventory calculated as below:
Beginning ; Ending
Finished goods $ 60,000 ; $ 40,000
Work in Process $ 120,000 ; $ 100,000
Direct Materials $ 40,000 ; $ 20,000
Questions:
1. Cost of Goods Manufactured (COGM)?
2. Cost of Goods Sold (COGS)?
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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