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 $15,436
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 108,185
Total cost of work in process 123,621
Less: Work in process, December 31 18,940
Cost of goods manufactured $104,681
 • Cost of Beginning work in process.
Work in •Carried over from prior years ending balance in the work in process account.
Process
January 1

• Raw materials inventory, 1/1

• Add: Raw Materials purchases
• Equals: Total raw materials available for use.
Direct
Materials • 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
cost • Equals: Total manufacturing cost

• Add: Beginning work in process

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