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Topic: Business
Number of pages / Number of words: 4 / 979
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The finished goods inventory is goods that is manufactured but not have been shipped yet. Those three types of inventory accounts are necessary for determining the cost of goods sold. I use the periodic inventory method. First of all, we need to determine the cost of materials used that is the sum of all materials issued during the period...

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First of all, we need to determine the cost of materials used that is the sum of all materials issued during the period.

(Materials used) = (Beginning materials inventory) +

(Purchased materials inventory) ? (Ending materials inventory)

Next, we need to determine the cost of goods manufactured that is the manufacturing or conversion cost such as labor costs and factory's utilities and materials cost...

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