This video shows an example of how to calculate Cost of Goods Sold for a manufacturer.
Manufacturers cannot calculate Cost of Goods in the same way that a retailer calculates Cost of Goods Sold, because manufacturers build their own inventory (in contrast to retailers, which purchase their inventory).
For manufacturing firms, Cost of Goods Sold is equal to the beginning Finished Goods Inventory plus Cost of Goods Manufactured minus ending Finished Goods Inventory.
To calculate Cost of Goods Manufactured, you add the total manufacturing costs to the beginning Work-in-Process Inventory and then subtract the ending Work-in-Process Inventory.
Total manufacturing costs are direct materials used, direct labor, and manufacturing overhead.—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
https://edspira.thinkific.com
—
LISTEN TO THE SCHEME PODCAST
Apple Podcasts: https://podcasts.apple.com/us/podcast...
Spotify: https://open.spotify.com/show/4WaNTqV...
Website: https://www.edspira.com/podcast-2/
—
GET TAX TIPS ON TIKTOK
/ prof_mclaughlin
—
ACCESS INDEX OF VIDEOS
https://www.edspira.com/index
—
CONNECT WITH EDSPIRA
Facebook: / edspira
Instagram: / edspiradotcom
LinkedIn: / edspira
—
CONNECT WITH MICHAEL
Twitter: / prof_mclaughlin
LinkedIn: / prof-michael-mclaughlin
—
ABOUT EDSPIRA AND ITS CREATOR
https://www.edspira.com/about/
https://michaelmclaughlin.com
Watch video How to Calculate COGS for a Manufacturer online without registration, duration hours minute second in high quality. This video was added by user Edspira 21 January 2019, don't forget to share it with your friends and acquaintances, it has been viewed on our site 43,903 once and liked it 429 people.