When the perpetual inventory method is used, which is normal when a company uses job order...

When the perpetual inventory method is used, which is normal when a company uses job order costing, the Statement of Cost of Goods Manufactured, shown in your textbook on p. 902,

is not necessary.

contains both a sales entry and a cost of good sold entry.

has, as its main objective, a reconciliation of beginning and ending balances in the Cost of Goods Sold account.

is required by the Securities and Exchange Commission in the company's annual report.

Solutions

Expert Solution

C. The statement of goods manufactured actually supports the cost of goods sold figure in income statement.

Reconciling the beginning and ending inventory and to calculate how much of inventory produced during the period and is ready for sale.

ekkarill92 answered 1 year ago

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