Cost of Goods Manufactured COGM is a schedule showing the total production costs during a specific period of time. See COGM formula examples in this guide. COGM is the total costs incurred to manufacture products and transfer them into finished goods inventory for actual retail sale..
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In managerial accounting and cost accounting, the cost of goods manufactured is a schedule, statement, or calculation of the production costs for the products that were completed in an accounting period..
Consider the cost of goods manufactured for the chocolate milk factory. Your beginning inventory cost $2,000. The factory put $10,000 worth of direct materials into production and spent $5,000 on direct labor and another $4,000 on overhead. At the end of the year, you counted $3,000 worth of ending inventory..
The cost of goods manufactured schedule is used to calculate the cost of producing products for a period of time. The cost of goods manufactured amount is transferred to the finished goods inventory account during the period and is used in calculating cost of goods sold on the income statement..
Thus, the total cost of goods manufactured for the period would be $265,000 $100,000 + $50,000 + $125,000 + $65,000 - $75,000 . This means that Steelcase was able to finish $265,000 worth of furniture during the period and move this merchandise from the work in process account to the finished goods account by the end of the period..