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Home Managerial/Cost Accounting Formulas Cost of Goods Manufacturing and Sold Statement Formulas


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
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
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

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You may also be interested in other cost/managerial accounting formulas:

  1. Cost of Goods Manufactured, Sold, and Income Statement Formulas
  2. Cost Volume Profit (CVP) Formulas


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Managerial Accounting

Introduction to Managerial Accounting
Business and Quality Improvement Programs
Cost Terms, Concepts and Classification
Job Order Costing system
Process Costing System
Process Costing System - Addition of Materials & Beginning Inventory
Controlling and Costing Materials
Materials and Inventory Cost Control
By Products and Joint Products Costing
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Standard Costing and Variance Analysis
Gross Profit Analysis
Linear Programming Technique
Segment Reporting and Transfer Pricing
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Service Department Costing
Cash Flow statement
Financial statement Analysis
Pricing Products and Services
Managerial Accounting Terms and Definitions
Managerial / Cost Accounting Formulas

Financial Accounting

Bookkeeping and Bookkeeping Terms
Accounting Principles and Accounting Equation
Accounting For Bills of Exchange
Subdivision of Journal
Final Accounts
Capital and Revenue Items
Single Entry System/Accounting From Incomplete Records
Accounting For Non-Trading Concerns
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Accounting for Joint Ventures
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