Cost Of Goods Manufactured Schedule

Cost of Goods Manufactured Schedule Bright and Shiny Pet Collars Inc. Cost of Goods Manufactured Schedule For the Year Ended December, 31 20XX Work in process, January 1 Direct Materials Raw material inventory, January 1 $18,945 Raw materials purchases 45,000 Total raw material avaliable for use 63,945 Less: Raw materials inventory, December 31 14,680 Direct materials used $49,265 Direct Labor 25,650 Manufacturing overhead Indirect labor 16,540 Indirect materials 8,000 Factory manager's salary 5,000 Factory repairs 1,450 Factory utilities 850 Factory depreciaton 780 Factory insurance 650 Total manufacturing overhead 33,270 Total manufacturing costs Total cost of work in process Less: Work in process, December 31 Cost of goods manufactured

$15,436

108,185 123,621 18,940 $104,681

• Cost of Beginning work in process. Work in Process January 1

Direct Materials

•Carried over from prior years ending balance in the work in process account.

• Raw materials inventory, 1/1 • Add: Raw Materials purchases • Equals: Total raw materials available for use. • Less: Raw materials inventory, 12/31 • Equals: Direct materials used

• Direct Labor Cost Direct Labor

•

Recorded from time tickets during the fiscal period.

• Indirect labor • Indirect materials • factory repairs • factory manager's salary • factory utilties Manufacturin • factory depreciation g Overhead • factory insurance • Equals: Total manufacturing overhead

• Add: Direct materials • Add: Direct labor Total • Add: Manufacturing Overhead manufacturing • Equals: Total manufacturing cost cost

Total cost of work in process

• Add: Beginning work in process • Add: Total manufacturing cost • Equals: Total cost of work in process.

• Total cost of work in process • Less: Work in Process, 12/31 Cost of goods manufactured • Equals: Cost of goods manufactured.

Step-by-step Instructions Cost of Goods Manufactured Schedule Start with the name of the company, the title of the statement and the period for which the statement is being prepared. Step 1. On the first line of the body of the statement place the beginning work in process amount in the far right hand column don’t forget to add a “$” sign. Title this line in the far left hand column, “Work in process, January 1, 20XX.” Step 2. Title the next line Direct Materials. This is a section heading only and does not have an amount attached to it. Step 3. On this line place, “Raw materials inventory, January 1, 20XX and place the amount with a “$” sign in the third column from the right. Step 4. On this line place, “Raw materials purchases” and place the amount in the third column from the right just under the beginning raw materials inventory amount. Place an underline under this amount. Step 5. On this line place, “Total raw materials available for use” then add the beginning raw materials and the raw materials purchased together to get this amount. Place the results directly under the raw materials purchases amount in the third column from the right. Step 6. On this line place, “Less: Raw materials inventory, December 31, 20XX” and place the amount in the third column from the right just under the total raw materials available for use. Place an underline under this amount. Step 7. On this line place, “Direct materials used.” Subtract the ending raw materials inventory from the raw materials available for use to get this amount. Place this resulting amount in the second column from the right. Step 8. On this line place, “Direct Labor.” Place the amount in the second column from the right just under the direct materials used amount. Step 9. On this line place, the title, “Manufacturing Overhead” since this is a heading there will be no amount in the amounts columns. Step 10. On these lines list all of the overhead cost individuals and place the individual amounts in the third column from the right. After the last overhead cost amount place an underline.

Step 11. On this line place, “Total manufacturing overhead” add together all of the overhead cost from the previous lines and place the total in the second column from the right. Place an underline under this amount. Step 12. On this line place, “Total manufacturing costs.” Add the three totals in the second column from the right and place that total in the far right hand column. Place an underline under this amount. Step 13. On this line place, “Total cost of work in process.” Add the Work in process, January 1 to the total manufacturing costs to get this amount then place it in the far right hand column just under the amount for total manufacturing overhead. Step 14. On this line place, “Less: Work in process, December 31, 20XX.” In the far right hand column place the amount under the amount for total cost of work in process. Place an underline under this amount. Step 15. On this line place, “Cost of goods manufactured.” Subtract work in process at December amount from total cost of work in process to get this amount and then place it in the far right hand column just under the amount for less work in process December 31. Double underline this total and don’t forget the dollar sign.