Professional Documents
Culture Documents
Chapter 02
Chapter 02
Chapter 02
Chapter 2
48
Learning Objective 1
Prepare an income
statement including
calculation of the cost of
goods sold.
49
Withdrawals
Beginning Additions Ending
balance + to inventory = balance + from
inventory
51
Quick Check ü
Learning Objective 2
Manufacturing Work
Raw Materials Costs In Process
Manufacturing Work
Raw Materials Costs In Process
Conversion
Beginning raw Direct materials
materials inventory + Direct labor
costs are costs
+ Raw materials + Mfg. overhead incurred to
purchased = Total manufacturing convert the
= Raw materials costs
available for use
direct material
in production into a finished
– Ending raw materials product.
inventory
= Raw materials used
in production
57
Manufacturing Work
Raw Materials Costs In Process
Manufacturing Work
Raw Materials Costs In Process
Work
In Process Finished Goods
Quick Check ü
Quick Check ü
Quick Check ü
Quick Check ü