Schedule of cost of goods sold for a manufactruing company Income Statement

Beginning raw material 5000 Sales

Add: Raw material purchased 20000 Less: Cost of goods sold
Raw material available for use 25000 Gross margin
Deduct: Ending raw material 2500 Less: Selling and administrative expenses
Raw material consumed in production 22500 Net operating income

Beginning Work-in-progress 7500

Add: Raw material consumed in production 22500
Add: Manufacturing expenses 75000
Deduct: Ending work-in-progress 10000
Cost of goods manufactured 95000

Add: Beginning finished goods inventory 15000

Add: Cost of goods manufactured 95000
Goods available for sale 110000
Deduct: Ending finished goods inventory 2500
Cost of goods sold 107500
nt Income Statement
250000 Sales 250000
107500 RM Consumed 22500
142500 Change in inventory WIP -2500
87500 Change in inventory FG 12500
55000 Manufacturing expenses 75000
COGS 107500
Gross margin 142500
Less: Selling and administrative expenses 87500
Net operating income 55000
Beginning Work-in-progress 7500
Add: Beginning finished goods inventory 15000
Add: Raw material consumed in production 22500
Add: Manufacturing expenses 75000
Deduct: Ending work-in-progress -10000
Deduct: Ending finished goods inventory -2500
Cost of goods sold 107500