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Let's discuss the format of the Schedule of Cost of Goods Manufactured. What is included in...

Let's discuss the format of the Schedule of Cost of Goods Manufactured. What is included in this schedule and what does it tell us?

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Statement of Cost of Goods Manufactured
Direct Material
Raw Material Inventory, Beginning XXX
Add: Material Purchased XXX
Total Direct Material Available for Prouction XXX
Less: Raw Material Inventory, Ending XXX
Cost of Direct Materials Used in Productions XXX
Direct Labor XXX
Manufacturing Overhead XXX
Total Manufacturing Costs XXX
Add: WIP Inventory, Beginning XXX
Sub-total XXX
Less: WIP Inventory, Ending XXX
Cost of Goods Manufactured XXX
The cost of goods manufactured schedule is used to calculate the cost of producing products for a period of time. The cost of goods manufactured amount is transferred to the finished goods inventory account during the period and is used in calculating cost of goods sold on the income statement. The cost of goods manufactured schedule reports the total manufacturing costs for the period that were added to work‐in‐process, and adjusts these costs for the change in the work‐in‐process inventory account to calculate the cost of goods manufactured.

ekkarill92 answered 1 year ago
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