(New Account Titles and Financial Statements) : Module 8: Introduction To Manufacturing Operation
(New Account Titles and Financial Statements) : Module 8: Introduction To Manufacturing Operation
Merchandising Manufacturing
General buys products at a make products
Concept low price and sell Classification of Cost
at a higher price. Prime Cost – direct product costs ( DM + DL )
Conversion Cost - manufacturing costs needed to
As to flow Purchases – Sells Purchases Raw convert the direct materials into products (DL + OH)
of Goods Materials – Process Product Cost – Costs that become part of the cost
Operations – Sells Finished of goods manufactured (DM + DL + OH)
Goods Period Cost – all costs other than product costs
As to Sales – CGS = Gross Sales – CGS = Gross
Costing Profit Profit Income Statement – Manufacturing