Final answer:
To prepare the cost of goods manufactured schedule, include direct materials, direct labor, manufacturing overhead, and inventory adjustments. The income statement is prepared by listing revenues, subtracting the cost of goods sold, and other expenses to find net income. Cost patterns analysis involves total, fixed, variable, marginal, and average costs.
Step-by-step explanation:
The process of calculating the merchandise balance and the current account balance involves the use of values for goods, services, and income payments. To prepare the schedule of cost of goods manufactured for the current year, one must consider the total manufacturing costs, which include direct materials, direct labor, and manufacturing overhead. Additionally, you would start with the beginning inventory for the year, add the total manufacturing costs, and subtract the ending inventory to arrive at the cost of goods manufactured.
For preparing the current year's income statement, you would list the revenues, subtract the cost of goods sold (which includes the cost of goods manufactured adjusted for inventory levels), and then subtract operating expenses to calculate the net income. The income statement also includes other income and expenses, such as interest and taxes, that affect the final net income figure.
When evaluating patterns of costs, it's crucial to understand the relationship between production and costs. The analysis includes the breakdown of total cost into fixed and variable costs, calculation of marginal and average costs, and determination of average profit.