What is the formula for Cost of Goods Manufactured and Sold?
Question
What is the formula for Cost of Goods Manufactured and Sold?
Solution
The formula for Cost of Goods Manufactured (COGM) is:
Beginning Work in Process Inventory + Direct Materials Used + Direct Labor Used + Manufacturing Overhead Applied - Ending Work in Process Inventory = Cost of Goods Manufactured
The formula for Cost of Goods Sold (COGS) is:
Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = Cost of Goods Sold
These formulas are
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