On the income statement of a manufacturing company, which of the following replaces purchases in the "Cost of goods sold" section of a retail company?

A) finished goods
B) cost of merchandise available
C) cost of goods manufactured
D) work in process

Question

Phuong Nguyen · Accepted Answer

Final Answer : C, Explanation :  The Cost of Goods Manufactured replaces purchases in the Cost of Goods Sold section for a manufacturing company, as it represents the total cost of goods that are completed and ready for sale, unlike a retail company which purchases finished goods for resale.

On the income statement of a manufacturing company, which of the following replaces purchases in the "Cost of goods sold" section of a retail company?

A) finished goods
B) cost of merchandise available
C) cost of goods manufactured
D) work in process

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Learning Objectives

Learning Objectives

Related questions

On the income statement of a manufacturing company, which of the following replaces purchases in the "Cost of goods sold" section of a retail company?A) finished goodsB) cost of merchandise availableC) cost of goods manufacturedD) work in process

Definitions

Learning Objectives

Learning Objectives

Related questions

On the income statement of a manufacturing company, which of the following replaces purchases in the "Cost of goods sold" section of a retail company?

A) finished goods
B) cost of merchandise available
C) cost of goods manufactured
D) work in process