As an employee write an internal memo to your manager addres

As an employee, write an internal memo to your manager addressing the following: Using the Internet, locate the most recent financial report of a company of your choosing. The company you select to research must be in the business of manufacturing a product. If the required information is not available, then you will need to select a different company. Write an initial post by responding to the following:

Do not research the company listed in the text.

What categories of inventory does the company show in its inventories footnote under “Notes to Consolidated Financial Statements”?

Using the income statement and inventory information from the footnote, calculate the cost of finished goods manufactured for the most recent year.

What elements of manufacturing overhead can you identify using the annual report?

Solution

Answer-1: General Motors Company

GM is a global automotive company headquartered in Detroit, Michigan, Unites States.

Answer-2: Note 6. Inventories

Dec 31, 2017

Dec. 31, 2016

Total productive material, supplies and work in process

4203

5008

Finished productive including service parts

6460

6032

TOTAL INVENTORIES

10663

11040

Answer-3: Cost of Sales

The most significant element of cost of sales is material cost which makes up approximately two-thirds of the total amount. The remaining portion includes labour costs, depreciation and amortization, engineering, and product warranty and recall campaigns.