A schedule of cost of goods manufactured includes all of the following costs EXCEPT:

• A. Manufacturing overhead
• B. Direct materials used
• C. Direct labor
• D. Cost of goods sold

Answer: (D)

Verified step by step guidance

1. Understand the concept of the schedule of cost of goods manufactured: This schedule is a detailed statement that calculates the total manufacturing costs incurred during a period and adjusts for changes in work-in-process inventory to determine the cost of goods manufactured.
2. Identify the components included in the schedule: The schedule includes direct materials used, direct labor, and manufacturing overhead. These are the three main categories of manufacturing costs.
3. Clarify the role of cost of goods sold: Cost of goods sold is not part of the schedule of cost of goods manufactured. Instead, it is calculated separately and represents the cost of goods that were sold during the period, derived from the finished goods inventory.
4. Distinguish between cost of goods manufactured and cost of goods sold: Cost of goods manufactured refers to the total cost of goods completed during the period, while cost of goods sold refers to the cost of goods that were sold. These are related but distinct concepts.
5. Conclude that the correct answer is 'Cost of goods sold': Since the schedule of cost of goods manufactured focuses on production costs and does not include cost of goods sold, this is the correct exclusion.