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
Or
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
Or
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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