COGM-COST OF Goods Manufactured PDF

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AAM3691 Management Accounting 1a (Semester 1 2021) [FS] [F]...

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What is Cost of Goods Manufactured (COGM)? Cost of Goods Manufactured (COGM) is a term used in managerial accounting that refers to a schedule or statement that shows the total production costs for a company during a specific period of time. Just like the name implies, COGM is the total cost incurred to manufacture products and transfer them into finished goods inventory for retail sale. The formula to calculate the COGM is: Add: Direct Materials Used Add: Direct Labor Used Add: Manufacturing Overhead Add: Beginning Work in Process (WIP) Inventory Deduct: Ending Work in Process (WIP) Inventory = COGM Final Cost of Goods Manufactured (COGM) Formula Schedule of Cost of Goods Manufactured For the Year Ended December 31, 2017 Direct Materials Beginning Raw Materials Inventory(a) Add: Purchases of raw materials(b) Deduct: Ending Raw Materials Inventory(c) Direct Materials used in production (d)=a+b+c Direct Labor Manufacturing Overhead Total Manufacturing costs Add: Beginning WIP Inventory Deduct: Ending WIP Inventory Cost of Goods Manufactured for the Year Add: Beginning Finished Goods Inventory Deduct: Ending Finished Goods Inventory...