Cost of Goods mannufactured

Direct Materials+ Direct Labour+ Manufacturing Overhead+ Opening WIP- Ending WIP
Work-in-process inventory, January 1, 2020 ----------------------------------------------------------------
47,500.00
Direct Materials
Beginning Raw materials January 1--------------------10,400
Raw material Purchase -----------------------------------76,000
Total Raw material Available for Use-----------------------------86,400
Less: Raw Material Inventory Dec 31 -----------------28,500
Direct Material Used --------------------------------------------------------------------- 57,900.00
Direct Labor Used ------------------------------------------------------- 52,500.00
Manufacturing Overhead
Material Handling Cost----------------------------------------------------------------- 11,000.00
Total Manufacturing Cost----------------------------------------------------------------
121,400.00
Total cost Work in Process ------------------------------------------------------------------------------
168,900.00
Less: Work in process December 31, 2020--------------------------------------------------------------
42,000.00
Cost of Goods Manufactured-------------------------------------------------------------------------
126,900.00
Cost of Goods Sold
Finished goods inventory, January 1, 2020 ------------------------------------------20,055.00
Cost of Goods Manufactured----------------------------------------------------------126,900.00
Cost of Goods Available for Sale----------------------------------------------------------------------
146,955.00
Less: Finished goods inventory, December 31, 2020-------------------------------------------------
10,750.00
Cost of Goods Sold---------------------------------------------------------------------------------------
136,205.00

ABC Company
Income Statement
For The Year Ended Dec 31, 2020

Sales --------------------------------------------------------250,000.00
Cost of Goods Sold ---------------------------------------136,205.00
 Gross Profit ------------------------------------------------ 113,795.00

Opening WIP = 47,500

Closing WIP =(42,000)

=5,500
\therefore
COGM=57,900+52,500+11,000+5,500=126,900∴COGM=57,900+52,500+11,0
00+5,500=126,900
Cost of Goods Sold
= Opening stock of finished goods+Purchases-Closing stock of finished goods
Opening stock = 20,055
Purchases( COGM)=126,900
Closing Stock = (10750)
=136,205
Income statement
Sales =250,000
Cost of goods sold =(136,205)
Gross profit =113,795