Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

Which of the following accounts would NOT appear on a schedule of cost of goods manufactured?

Manufacturing Overhead

Finished Goods Inventory

Direct Labor

Direct Materials

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Verified step by step guidance

Understand the purpose of a schedule of cost of goods manufactured: This schedule is used to calculate the total manufacturing costs incurred during a period and determine the cost of goods completed and transferred to Finished Goods Inventory. It includes Direct Materials, Direct Labor, and Manufacturing Overhead.

Review the components of the schedule: The schedule includes three main categories of costs: Direct Materials (raw materials used in production), Direct Labor (wages of workers directly involved in production), and Manufacturing Overhead (indirect costs like factory utilities, depreciation, etc.).

Identify the role of Finished Goods Inventory: Finished Goods Inventory represents completed products that are ready for sale. It is not part of the cost of goods manufactured schedule because it is an account on the balance sheet, not a manufacturing cost.

Compare the given options: Direct Materials, Direct Labor, and Manufacturing Overhead are all components of the cost of goods manufactured schedule. Finished Goods Inventory, however, is not included in this schedule.

Conclude that Finished Goods Inventory would NOT appear on a schedule of cost of goods manufactured, as it is a balance sheet account and not a manufacturing cost.