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Work in process, January 1
$15,436
Direct Materials
Raw material inventory, January 1$18,945Raw materials purchases45,000Total raw material avaliable for use63,945Less: Raw materials inventory, December 3114,680Direct materials used$49,265
Direct Labor
25,650
Manufacturing overhead
Indirect labor16,540Indirect materials8,000Factory manager's salary5,000Factory repairs1,450Factory utilities850Factory depreciaton780Factory insurance650Total manufacturing overhead33,270
Total manufacturing costs
108,185Total cost of work in process123,621
Less: Work in process, December 31
18,940
Cost of goods manufactured
$104,681
Bright and Shiny Pet Collars Inc.Cost of Goods Manufactured ScheduleFor the Year Ended December, 31 20XX
Cost of Goods Manufactured Schedule
 
 
Work inProcessJanuary 1
•
Cost of Beginning work in process.
•
Carried over from prior years ending balance in the work in process account.DirectMaterials
•
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
Totalmanufacturingcost
•
Add: Direct materials
•
Add: Direct labor
•
Add: Manufacturing Overhead
•
Equals: Total manufacturing cost
 
Total cost of work inprocess
•
Add: Beginning work in process
•
Add: Total manufacturing cost
•
Equals: Total cost of work in process.
Cost of goodsmanufactured
•
Total cost of work in process
•
Less: Work in Process, 12/31
•
Equals: Cost of goods manufactured
.
 
Step-by-step InstructionsCost of Goods Manufactured Schedule
Start with the name of the company, the title of the statement and the period for whichthe statement is being prepared.Step 1. On the first line of the body of the statement place the beginning work inprocess amount in the far right hand column
don’t forget to add a “$” sign
. Title this line
in the far left hand column, “Work in process, January 1, 20XX.”
 Step 2. Title the next line Direct Materials. This is a section heading only and does nothave an amount attached to it.
Step 3. On this line place, “Raw materials inventory, January 1, 20XX and place the
amount
with a “$” 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 anunderline 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 theresults directly under the raw materials purchases amount in the third column from theright.
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 materialsavailable for use. Place an underline under this amount.Step 7.
On this line place, “Direct materials used.” Subtract the endi
ng raw materialsinventory from the raw materials available for use to get this amount. Place this resultingamount 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 individualamounts in the third column from the right. After the last overhead cost amount place anunderline.
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