Question

What is the schedule of costs of goods manufactured example with raw materials and direct materials?

Answer 1

The schedule of costs of goods manufactured includes the cost of raw materials and direct materials in the production process.

Step-by-step explanation:

In the context of cost of goods manufactured, raw materials and direct materials play an important role. Let's consider an example:

Suppose a company manufactures bicycles. The raw materials used in the production process include steel, rubber tires, and plastic parts. The direct materials, on the other hand, refer to those materials that are specifically traceable to the production of each bicycle, such as the metal frame, wheels, and seat. The cost of these raw materials and direct materials would be included in the schedule of costs of goods manufactured.