SESSION 8

Example: A car company expect that, in order to complete 01 car, it needs: $5,000
$10,000
$20,000
$35,000
01/1/2022: the company's factory starts manufacturing
so, it bought: $5,000 of direct materials

Direct Materials Work-in-Process Inventory

1/1/2022 5,000

31/12/2022: the factory reported its manufacturing progress

the factory saw that: $3,000 of Direct materials were used
$6,000 of Direct labour were used
$12,000 of Manufacturing Overhead were used
$21,000 -----> Total current manufacturing costs for 2022

Direct Materials Work-in-Process Inventory

Op. Bal - Op. Bal -
1/1/2022 5,000 12/31/2022 3,000
12/31/2022 3,000 12/31/2022 6,000
12/31/2022 12,000
End. Bal 2,000 End. Bal 21,000

=====>Opening Balance of WIP (2022) + Total current manufac

31/12/2023: the factory reported its manufacturing progress - CASE 1

the factory saw that: $2,000 of Direct materials were used
$4,000 of Direct labour were used
$8,000 of Manufacturing Overhead were used
$14,000 -----> Total current manufacturing costs for 2023

Direct Materials Work-in-Process Inventory

Op. Bal 2,000 Op. Bal 21,000
 12/31/2023 2,000 12/31/2023 2,000
12/31/2023 4,000
12/31/2023 8,000

End. Bal - End. Bal -

=====>Opening Balance of WIP (2023)

=====>Ending Balance of WIP inventory (2022)
=====>Opening Balance of WIP (2022) + Total current manufac

=====>
=====>

31/12/2023: the factory reported its manufacturing progress - CASE 2

the factory saw that: $3,000 of Direct materials were used
$5,000 of Direct labour were used
$9,000 of Manufacturing Overhead were used
$17,000 -----> Total current manufacturing costs for 2023

The factory had already bought more direct materials in preparation of the next car production
On 1/1/2023, it bought $5,000 of direct materials

Direct Materials Work-in-Process Inventory

Op. Bal 2,000 Op. Bal 21,000
1/1/2023 5,000 12/31/2023 3,000
12/31/2023 3,000 12/31/2023 5,000
12/31/2023 9,000

End. Bal 4,000 End. Bal 3,000

31/01/2024: the factory sold the car

Direct Materials Work-in-Process Inventory

Op. Bal 2,000 Op. Bal 21,000
 1/1/2023 5,000 12/31/2023 3,000
12/31/2023 3,000 12/31/2023 5,000
12/31/2023 9,000

End. Bal 4,000 End. Bal 3,000

COGS
Op. Bal -
1/31/2024 35,000

End. Bal 35,000

=====>Opening Balance of WIP (2023) + Total current manufac

21,000 +
=====>COG manufactured: Tất cả các manufacturing cost đã được chi ra và đã được chuyển hóa thành dạ
Tương tự như công thức tính COGS của Merchandisers:
Operning balance of FG + Manufactured - COGS = Ending balance of FG
=====>Cost of goods manufactured = Ending balance of FG + COGS
=====>COGS = Opening balance of FG + COG
 direct materials
direct labour (equalling to 20 labouring hours) ====> $500 /hour
manufacturing overhead
-----> Total manufacturing costs / car ===> Cái này có phải là COG manufactured không??? KHÔNG, vì CO
Kể cả khi lấy COG manufactured chia cho tổng quantity of FG được hìn

rk-in-Process Inventory Finished Goods

ng costs for 2022 ---> Not enough to complete one car (or a finished goods)
---> So, if it is not yet a finished goods, where should these costs flow into?
---> They should flow tin "WIP inventory"

rk-in-Process Inventory Finished Goods

Op. Bal -

End. Bal -

Total current manufacturing (for 2022) = Ending Balance of WIP inventory (2022)

ng costs for 2023 ---> Such additional costs, along with previous "total current manufacturing costs of 2022", has comple
(because, in this case, the total manufacturing costs have been incurred since 01/01/2022 = $21,000 + $
while, total manufacturing cost of 01 complete car = $35,000)

rk-in-Process Inventory Finished Goods

Op. Bal -
 12/31/2023 35,000

12/31/2023 35,000
End. Bal 35,000

+ Total current manufacturing (for 2023

+ Total current manufacturing (for 2023
Total current manufacturing (for 2022) + Total current manufacturing (for 2023

Total cost of WIP

Total cost of WIP

ng costs for 2023 ---> Such additional costs, along with previous "total current manufacturing costs of 2022", has comple
(because, in this case, the total manufacturing costs have been incurred since 01/01/2022 = $21,000 +
while, total manufacturing cost of 01 complete car = $35,000)
he next car production

rk-in-Process Inventory Finished Goods

Op. Bal -
12/31/2023 35,000

12/31/2023 35,000
End. Bal 35,000

rk-in-Process Inventory Finished Goods

Op. Bal -
 12/31/2023 35,000
1/31/2024 35,000

12/31/2023 35,000
End. Bal -

COGS

Total current manufacturing (for 2023) = Ending Balance of WIP inventory (2023)
17,000 = 3,000
và đã được chuyển hóa thành dạng FG

balance of FG
Ending balance of FG + COGS - Opening balance of FG
Opening balance of FG + COG manufactured - Ending balance of FG

= Opening balance of WIP + Total current manufacturing of the year - Ending balance of
= Total Cost of WIP - Endin
d không??? KHÔNG, vì COGM là dạng total value, không phải dạng "per unit"
ng quantity of FG được hình thành trong period, thì nó cũng cho ra cái giá trị trung bình, chứ chưa chắc hoàn toàn bằng $35,000

P inventory (2022)

g costs of 2022", has completed one car (or a finished goods)

e 01/01/2022 = $21,000 + $14,000 = $35,000;
 turing (for 2023 = Ending Balance of WIP inventory (2023)
turing (for 2023 = Ending Balance of WIP inventory (2023)
turing (for 2023 = Ending Balance of WIP inventory (2023)

= Ending Balance of WIP inventory (2023)

= Ending Balance of FG (2023)

g costs of 2022", has completed one car (or a finished goods) & another WIP inventorty
e 01/01/2022 = $21,000 + $17,000 = $38,000;
P inventory (2023) + Cost of goods manufactured
+ 35,000

e year - Ending balance of WIP

- Ending balance of WIP
hoàn toàn bằng $35,000 kia (vì manufacturing costs/unit có thể thay đổi)
 Beginning
Finished Goods
Cost of goods
sold
Beginning WIP

Cost of goods
Manufactured
 Cost of Goods
Available for sale

Ending Finished
Goods
 Total
manufacturing
costs

Total cost
of WIP

Ending WIP
Beginning Direct
materials

Direct Materials
available for use

Direct Materials
used
Direct labour
incurred

Manufacturing
Overhead
Direct Materials
purchased

Ending Direct
materials
Review Question - LO 3

Raw materials inventory

Work in process inventory
Materials purchased in March $90,000
Direct labor in March 75,000
Manufacturing overhead in March 220,000

Prepare the cost of goods manufactured SCHEDULE for th

of March 2022. (Assume that all raw materials used were dire
materials)

ANSWER:

Keystone Company
Cost of Goods Manufactured Schedule
For the month ended March 31, 2022

Work in process, Mar 01

Direct materials
Raw materials inventory, Mar 01 $12,000
Raw materials purchases 90,000
Total raw materials available for use 102,000
Less: Raw material inventory, Mar 31 10,000
Direct materials used
Direct labour
Manufacturing Overhead
Total manufacturing costs (March)
Total cost of WIP
Less: WIP inventory, Mar 31
Cost of goods manufactured
 Mar-01 Mar-31
$12,000 $10,000
2,500 4,000

SCHEDULE for the month

als used were direct

Schedule
31, 2022

$2,500

$92,000
75,000
220,000
387,000
389,500
 4,000
$385,500
1 Midterm: SV dùng cheatsheet (A4 VIẾ
2 Cheatsheet KHÔNG ĐƯỢC PHÉP SỬ

3 Cheatsheet: viết tay, KHÔNG được vi

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G ĐƯỢC PHÉP SỬ DỤNG Ở FINAL EXAM
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