cost of goods manufactured schedule

Dictionary of Accounting Terms for: cost of goods manufactured schedule
cost of goods manufactured schedule

form showing the cost of producing goods during the accounting period. The cost of goods manufactured is an element in preparing the income statement. It consists of the cost of producing goods: direct material, direct labor, and factory overhead. Also considered is the change in the work-in-process inventory.

Assume work-in-process inventory was $30,000 on 1/1/2005 and $35,000 on 12/31/2005. During the year, manufacturing costs were direct material $20,000, direct labor $23,000, and factory overhead $40,000. The cost of goods manufactured schedule follows:

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Work-in-process – 1/1/2005 $30,000
Add: Manufacturing costs
Direct material $20,000
Direct labor 23,000
Factory overhead 40,000
Total manufacturing cost 83,000
Total $113,000
Less: Work-in-process – 12/31/2005 35,000
Cost of goods manufactured $78,000