Which of the following accounts appears on the income statement of a manufacturer?

Cost of Goods Sold (COGS) is a crucial component of a manufacturer's income statement because it reflects the direct costs attributable to the production of the goods sold during a specific period. COGS includes expenses for materials, labor, and overhead directly tied to the manufacturing process. This account is significant as it helps determine the gross profit by subtracting COGS from sales revenue.

Sales Revenue is also found on the income statement and provides the total income generated from sales before any expenses are deducted. However, COGS specifically represents the costs associated with those sales, making it a vital figure for analyzing the profitability of a manufacturer.

On the other hand, Direct Materials and Inventory Valuation are not listed directly on the income statement. Instead, Direct Materials is typically considered part of COGS as it includes the raw materials used in production, while Inventory Valuation pertains to the balance sheet, reflecting the costs of unsold goods at a point in time. Thus, while related, they do not appear as standalone line items on the income statement.