A manufacturing company uses a series of events known as an accounting cycle to prepare financial statements. Being a manufacturer takes some specific requirements, especially the need to use the accrual method in most cases, and the need to find a system to value inventory.
Cost Classifications on Financial Statements: Learning Objectives of this Article: Prepare a schedule of cost of goods manufactured. Prepare income statement including a schedule of cost of goods sold. Merchandising and manufacturing firms, both prepare financial statement reports for creditors, stockholders, and others to