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The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.
Cost of Goods Sold
Expenses directly associated with the production process of goods for sale by a company, including both labor and materials.
Cost of Goods Manufactured
The total production cost of goods completed during a specific period, including materials, labor, and overhead.
Cost of Goods Purchased
The total price paid for products bought for resale, including freight-in costs, less any purchase returns or allowances.
- Acquire knowledge on the makeup and control of manufacturer inventories, encompassing raw materials, work in process, and finished goods.
- Develop an understanding of the assorted production costs, like direct materials, direct labor, and overhead, and how they are factored into the cost of goods sold.
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Learning Objectives
- Acquire knowledge on the makeup and control of manufacturer inventories, encompassing raw materials, work in process, and finished goods.
- Develop an understanding of the assorted production costs, like direct materials, direct labor, and overhead, and how they are factored into the cost of goods sold.
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