Answer:
D. component in the calculation of cost of goods sold on the income statement.
Explanation:
In the income statement, cost of goods manufactured is transferred from the manufacturing account and added to the beginning finished goods while the ending finished goods is deducted to obtain the cost of good sold. This can be presented as follows:
Details Amount ($)
Beginning finished goods xx
Cost of goods manufactured xxx
Cost of goods available for sale xxxx
Ending finished goods (xx)
Cost of good sold xxx
