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 are typically included as manufacturing costs in the calculation of Cost of Goods Sold under both perpetual and periodic inventory systems?

Direct materials, direct labor, and manufacturing overhead

Manufacturing overhead, administrative expenses, and interest expense

Selling expenses, administrative expenses, and direct labor

Direct materials, selling expenses, and administrative expenses

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Verified step by step guidance

Understand the concept of manufacturing costs: Manufacturing costs are the costs incurred to produce a product. These typically include direct materials, direct labor, and manufacturing overhead.

Direct materials refer to the raw materials that are directly used in the production of goods. For example, wood used to make furniture.

Direct labor refers to the wages paid to workers who are directly involved in the production process, such as assembly line workers.

Manufacturing overhead includes all indirect costs associated with production, such as factory rent, utilities, and equipment depreciation. These are necessary to support the production process but are not directly traceable to specific units of production.

Administrative expenses, interest expense, and selling expenses are not considered manufacturing costs because they are not directly related to the production of goods. Therefore, they are excluded from the calculation of Cost of Goods Sold.