Cost Of Goods Sold Formula

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Cost of Goods Sold Formula

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Cost Of Goods Sold Formula

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

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