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Cost of Goods Sold Formula
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Cost of Goods Sold Statement.Material Opening inventory 1,572400
Add Purchases 8420,000
(Less Purchase return) (42,000) 8,378,00
Material available for use 9,950,400
(Less material inventory Closing 1,270600
Direct material consumed 8,679,800
Cost Of Goods Manufactured =
Total Manufacturing cost
Add Work in process (opening)
=
Cost of goods to be manufactured
Less Work in process (Closing)
=
Cost of Goods ManufacturedPrime Cost =Direct material+Direct Labor
Conversion Cost= Direct labor+FOH
Total Manufacturing Cost =
Prime cost (OR) Direct material
+ +
FOH Direct Labor
+
FOH
Cost Of Goods Sold =
Cost Of Goods Manufactured
+
Add opening finished good
Inventory
Cost of goods available for sale
Less closing Finished good
Inventory
Cost of Goods Sold