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Flowchart

This document outlines accounting steps for calculating cost of goods sold (COGS) for either a manufacturing or non-manufacturing concern. It involves entering beginning balances, purchases, expenses, and ending balances to calculate COGS. Key figures like raw materials used, manufacturing costs, goods placed in process, finished goods, and inventory are tracked. The steps adjust COGS based on whether actual overhead differs from applied overhead or if indirect materials are part of raw materials purchases.

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Moises Calastravo
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91 views3 pages

Flowchart

This document outlines accounting steps for calculating cost of goods sold (COGS) for either a manufacturing or non-manufacturing concern. It involves entering beginning balances, purchases, expenses, and ending balances to calculate COGS. Key figures like raw materials used, manufacturing costs, goods placed in process, finished goods, and inventory are tracked. The steps adjust COGS based on whether actual overhead differs from applied overhead or if indirect materials are part of raw materials purchases.

Uploaded by

Moises Calastravo
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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A

Enter DL Enter RMB Enter ApFOH Enter P TMC=RMU+DL+ApFOH Enter FI Enter WIPB Yes
A

Is AcFOH > ApFOH?

No
A

COGS=COGS+(AcFOHApFOH COGS=COGS-(AcFOHApFOH COGS=COGS+(AcFOHApFOH

Enter PRA TGPP=TMC+WIPB

Enter PD Enter WIPE

Display COGS

NP=P+FI-PRA-PD TGM=TGPP-WIPE

RMA=RMB+NP

Enter FGB

Enter RME

TGAS=TGM+FGB

END

RMU=RMA-RME

Enter FGE

CGOS=TGAS-FGE Is the indirect material part of Raw Materials when purchased? No


A

Enter AcFOH

Yes
A

Enter IMU

Is AcFOH ApFOH?

No
A

Display COGS

RMU=RMU-IMU

Yes
A

B A

Enter MIB

Enter P

Enter FI

Enter PRA

Enter PD

NP=P+FI-PRA-PD

TGAS=MIB+NP

Enter MIE

COGS=TGAS-MIE

Display COGS

END

START

RMB-Raw Materials Beginning P-Purchases FI-Freight-in PD-Purchase Discount PRA-Purchase Returns and Allowances NP-Net Purchases RMA-Raw Materials Available RME-Raw Materials Ending RMU-Raw Materials Used IM-Indirect Materials Used DL-Direct Labor ApFOH-Applied Factory Overhead TMC-Total Manufacturing Cost WIPB-Work in Process Beginning TGPP-Total Goods Placed in Process WIPE-Work in Process Ending TGM-Total Goods Manufactured FGB-Finished Goods Beginning TGAS-Total Goods Available for Sale COGS-Cost of Goods Sold MIB-Merchandise Inventory Beginning MIE-Merchandise Inventory Ending

Is the operation a manufacturing concern?

No
A

Yes
A

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