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    Costs of Goods Sold, Inventory and Insurance Company

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    - What items make up cost of goods sold?
    - Why is calculating the cost of goods sold important?
    - How does beginning and ending inventory affect cost of goods sold?
    - How does an insurance company calculate cost of goods sold?

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    Solution Preview

    (1) Usually cost of goods sold contains:
    - direct labor
    - direct materials
    - indirect labor
    - indirect materials

    (2) It's important to calculate the cost of goods sold for 2 reasons:
    - it's an item ...

    Solution Summary

    This solution details four items that make up cost of goods sold, two reasons for the importance of calculating cost of goods, how beginning and ending inventor affect cost of goods sold, and three methods an insurance company calculates the cost of goods sold.