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

Bright and Shiny Pet Collars Inc.

Cost of Goods Manufactured Schedule

For the Year Ended December, 31 20XX

Cost of Goods Manufactured Schedule

Work in Process

January 1

• Cost of Beginning work in process. •Carried over from prior years ending balance in the work in process account.

Direct Materials

• Raw materials inventory, 1/1

• Add: Raw Materials purchases

• Equals: Total raw materials available for use.

• Less: Raw materials inventory, 12/31

• Equals: Direct materials used

Direct Labor

• Direct Labor Cost

• Recorded from time tickets during the fiscal period.

Manufacturing Overhead

• Indirect labor • Indirect materials

• factory repairs • factory manager's salary

• factory utilties

• factory depreciation

• factory insurance

• Equals: Total manufacturing overhead

Total manufacturing

cost

• Add: Direct materials

• Add: Direct labor

• Add: Manufacturing Overhead

• Equals: Total manufacturing cost

Total cost of work in process

• Add: Beginning work in process

• Add: Total manufacturing cost

• Equals: Total cost of work in process.

Cost of goods manufactured

• Total cost of work in process

• Less: Work in Process, 12/31

• 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.