How to Prepare a Cost of Goods Manufactured Statement (Cost Accounting Tutorial #24)

⌚Timestamps
0:00 - Introduction
0:30 - Inventory Subaccounts
1:20 - COGM Statement: Direct Materials
3:00 - COGM Statement: Direct Labor
3:50 - COGM Statement: Manufacturing Overhead
5:45 - COGM Statement: Work-in-process Inventory
7:20 - Calculating Cost of Goods Sold

The cost of goods manufactured statement displays the cost of products manufactured in a period by breaking down the costs into direct materials, direct labor, manufacturing overhead and changes in work in process. Cost of goods manufactured will ultimately be added to finished goods and be expensed as cost of goods sold.

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[spiritus]

Coming to this video many years down the line
He's about to watch the world cup
"I'm a bit of a super fan for Germany."
Damn, this guy is about to have a really good day. Good for him, after saving our asses with this video.

[mathewjr]

This just helped me completed a problem solving assignment. Thanks alot from Papua New Guinea. 👍

[larryenticer]

God bless people like you. My ass has just been saved yet again

[alexadalpedri]

THANK You just saved my ass... in homework terms... 
I didn't quite get this from lecture. THANK YOU!

[axanastanislava]

So easily explained. I love that you presented a "big picture" sort of explanation about it. Thank you so much! I get it now!! lol :-)

[clingyvibes]

Thank you for this, really helpful for college students like me 😍😉

[Brainwavebounty]

Just earned 3 weeks of material in 10 minutes.

One question. President's salary would not be considered direct labor or manufacturing overhead right? What about Plat Supervisor's salary? He is technically part of manufacturing so I am not sure.

[portiafielies]

going to try this and let u know how it worked for me ...thank u

[desireedombek]

This was pretty awesome! Very clear and to the point! Thanks

[Wardahera]

Hi Great video! Just wanted to ask how to calculate work in process for cogm in a month
Thanks

[angelogarcia]

im still confused. im not sure im understanding the statement that they gave me in my classI hate accounting

[papayugoslava]

This helped me so much with my ACCT homework! Thank you so much!

[reannelazar]

Thank you, this video was so straight forward!

[benjiledua]

can you also put synonym for words such as ending inventory and so forth. please

[GUDDAisHere]

I wish you compared COGS for manufacturing VS merchandising

[marialebea]

Thank you so much but I am failing to interprete the additional information given to me when calculating my cost of goods manufactured. Let's say for instance I'm given $28600 as my water and electricity (30% is for water) with this additional information: During the year, the factory utilized 5 500 litres of water and 38 500 kilowatts of electricity while the office building utilized 2 750 litres and 11 000 kilowatts. The
factory occupies 77% of the total property space.

How do I interpret it and put everything on its rightful place

[TheJayeshmotwani]

Why to add the difference of the Work in Progress at the beginning and end to the COGM ? Can you enlighten more.

[sheenabeanorr]

The FG beg and end did you just make these numbers up or are the from the totals of DM & DL?

[lotabalitaan]

Shouldnt the WIP ending (14, 000) be increased instead of decreased?

[ericwilkinson]

Can we account for the depreciation of the machines in the cost of goods? It seems that if the machines are being used to make the product (causing the wear and tear) should go into the cost to make the product because they will eventually need to be replaced. I am thinking from a start-up manufacturing and trying to figure out what the cost of each widget. Thanks