Schedule of Cost of Goods Manufactured - PowerPoint PPT Presentation

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Schedule of Cost of Goods Manufactured PowerPoint Presentation
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Schedule of Cost of Goods Manufactured

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Schedule of Cost of Goods Manufactured
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Schedule of Cost of Goods Manufactured

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  1. Schedule of Cost of Goods Manufactured Direct Materials • Raw material inventory, beginning • Add: Raw materials purchased • Raw materials available for use • Deduct: Raw material inventory, ending • Total: Raw material used Direct Labor Manufacturing Overhead • Indirect Material • Add: Indirect labor • Add: Rent on factory building • Add: Depreciation on factory equipment • Add: Utilities • Add: Property taxes • Add: Insurance • Total Manufacturing Overhead • Deduct: Underapplied overhead • Total: Overhead applied to work in process Direct Materials Add: Direct Labor Add: Manufacturing Overhead Total: Manufacturing Costs Incurred Add: Work in Process, Beg. Period Manufacturing Costs to Account For Deduct: Work in Process, End Period Cost of Goods Manufactured Transferred to Schedule of Cost of Goods Sold

  2. Job Order CostingA visual representation of the Schedule of Cost of Goods Manufactured Conversion Costs Direct Material Purchased Indirect materials (Lubricants, bolts, etc.) Direct Labor-Job 2 Manufacturing Overhead Applied to Job 2 Direct Material-Job 2 End MIP Beg MIP Job 2 End WIP Beg WIP Job 1 Job 3 Directly to Manufacturing Overhead Control FACTORY Direct Material Used STOREROOM

  3. Schedule of Cost of Goods Sold • Finished Goods Inventory, Beginning of Period • Add: Cost of Goods Manufactured • Cost of Goods Available for Sale • Deduct: Finished Goods Inventory, End of Period • Cost of Goods Sold • Deduct: Over Applied or Under Applied Overhead • Total: Cost of Goods Sold (Adjusted) Transferred to Income Statement

  4. Income Statement • Sales Revenue • Deduct: Cost of Goods Sold (Adjusted) • Gross Margin • Deduct: Selling and Administrative Expenses • Income before Taxes • Deduct: Income Tax Expense • Total: Net Income