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  • Cost Goods Sold Standard Format

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    Love Islam
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    Opening balances of material and work in process inventory were added to purchases and transport in to calculate the cost of material available for use, which less closing material inventory equals direct labor consumed and cost. Adding direct labor cost results in prime cost, and adding actual/applied fixed overhead gives product cost. This along with opening work in process inventory is the cost of goods available for manufacture. Less closing work in process inventory gives the cost of goods manufactured. Adding opening finished goods inventory gives the cost of goods available for sale, and less closing finished goods is the cost of goods sold.

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    Opening balances of material and work in process inventory were added to purchases and transport in to calculate the cost of material available for use, which less closing material inventory equals direct labor consumed and cost. Adding direct labor cost results in prime cost, and adding actual/applied fixed overhead gives product cost. This along with opening work in process inventory is the cost of goods available for manufacture. Less closing work in process inventory gives the cost of goods manufactured. Adding opening finished goods inventory gives the cost of goods available for sale, and less closing finished goods is the cost of goods sold.

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    © All Rights Reserved
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    5 views1 page

    Cost Goods Sold Standard Format

    Uploaded by

    Love Islam
    Opening balances of material and work in process inventory were added to purchases and transport in to calculate the cost of material available for use, which less closing material inventory equals direct labor consumed and cost. Adding direct labor cost results in prime cost, and adding actual/applied fixed overhead gives product cost. This along with opening work in process inventory is the cost of goods available for manufacture. Less closing work in process inventory gives the cost of goods manufactured. Adding opening finished goods inventory gives the cost of goods available for sale, and less closing finished goods is the cost of goods sold.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Opening Balance Material Inventory 100,000

    Add) Purchases 50,000


    Add) Transport In 2,000
    Cost of Material Available For Use 152,000
    Less) Closing Balance Material Inventory 25,000
    Direct Labour Consumed 127,000
    Add) Direct Labour Cost 33,000
    Prime Cost 160,000
    Add) FOH Actual/Applied 10,000
    Product Cost 170,000
    Add) Opening Balance Work In Process Inventory 30,000
    Cost of Goods Available For Manufacture 200,000
    Less) Closing Balance Work In Process Inventory 10,000
    Cost of Goods Manufactured 190,000
    Add) Opening Balance Finished Goods 2,000
    Cost of Goods Available for Sale 192,000
    Less) Closing Balance Finished Goods 120,000
    Cost of Goods Sold 180,000

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