Cost of Goods Manufactured and Sold Statement Formulas:
Prime Cost = Direct Materials Cost + Direct Labor Cost
Total Factory Cost or Manufacturing Cost = Direct Materials + Direct Labor Cost + Factory Overhead Conversion Cost = Direct Labor Cost + Factory Overhead Cost Cost of Goods Manufactured (COGM) = Total Factory Cost + Opening Work in Process Inventory - Ending Work in Process Inventory Or Cost of Goods manufactured = Direct materials cost + Direct labor cost + Factory overhead cost + Opening work in process inventory - Ending work in process inventory Cost of goods sold (COGS) = Cost of goods manufactured + Opening finished goods inventory - Ending finished goods inventory Or Cost of goods sold = Direct materials cost + Direct labor cost + Factory overhead cost +Opening work in process inventory - Ending work in process inventory + Opening finished goods inventory - Ending finished goods inventory Number of units manufactured = Units sold + Ending Finished Goods units Opening finished goods units Per unit cost of goods manufactured = Cost of goods manufactured / Units manufactured Materials used or consumed = Opening inventory or materials + Net purchases of materials- Ending inventory of materials Income statement formulas: Gross profit = Net sales - Cost of goods sold Operating profit = Gross profit - Operating expenses Operating or commercial expenses = Selling or marketing expenses + General or administrative expenses Per unit gross profit = Gross profit / No. of units sold Per unit net profit = Net profit / No. of units sold Percentage of GP to sales = (Gross profit / Net sales) 100 Percentage of net profit to sales = (Net profit / Net sales) 100