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 items would NOT be reported on the statement of cost of goods manufactured?

Manufacturing overhead

Cost of goods sold

Direct labor

Direct materials used

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Verified step by step guidance

Understand the purpose of the statement of cost of goods manufactured: This statement is used to calculate the total cost incurred to produce goods during a specific period. It includes direct materials, direct labor, and manufacturing overhead.

Review the components of the statement: The statement typically includes direct materials used, direct labor, manufacturing overhead, and the beginning and ending inventory of work-in-progress to calculate the total manufacturing costs.

Identify the item that does not belong: Cost of goods sold is not part of the statement of cost of goods manufactured. Instead, it is reported on the income statement and represents the cost of goods that have been sold during the period.

Clarify the distinction: Cost of goods sold is calculated after the cost of goods manufactured and is used to determine the gross profit. It is not part of the production cost calculation but rather the cost of goods that have left inventory.

Conclude: The correct answer is 'Cost of goods sold' because it is not included in the statement of cost of goods manufactured, which focuses solely on production costs.