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    COGM-Download

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    COGM - Example

    Consider the following information for Generic Company. for the fiscal year ended November 30th.

    Work-in-Process inventory, Nov. 30 $8,000

    Work-in-Process inventory, Dec, 1 26,000

    Depreciation expense- Administrative office 29,000

    Depreciation expense-Plant and equipment 84,000

    Direct labor -- wages 490,000

    Direct materials inventory, Nov. 30 23,000

    Direct materials inventory, Dec. 1 20,000

    Direct materials purchases 161,000

    Finished goods inventory, Nov. 30 40,000

    Finished goods inventory, Dec. 1 12,000

    Heat, light, & power--Plant 47,000

    Indirect labor - Plant 23,000

    Property taxes--Plant 37,000

    Sales representatives' salaries 19,000

    Sales revenue 1,607,000

    Factory Supervisors salary 68,000

    Supplies-- Administrative office 17,000

    Supplies--Plant 30,000

    Interest Expense 15,000

    Income Tax Expense 180,000

    Required: Prepare a Statement of Cost of Goods Manufacturer and a Multi-Step Income Statement for
    the fiscal year ended November 30.
    COGM - Example
    Generic Company provided the following details about operations in February:

    Purchases of raw materials 140,000

    Maintenance, factory 50,000

    Direct Labour 37,200

    Depreciation, factory equipment 61,000

    Indirect Materials, factory 5,500

    Selling and Administration salaries 43,200

    Utilities, factory 27,500

    Sales commissions 20,500

    Insurance, factory equipment 5,000

    Depreciation, sales equipment 25,000

    Advertising expenses 108,200

    Rent, factory building ?

    The company also provided details regarding the balances in the inventory accounts at the beginning
    and end of the month as follows:

    Inventories Beginning of the Month End of the Month

    Raw Materials 30000 ?

    Work in Progress 25000 ?

    Finished Goods 20000 ?

    Raw materials used in production cost $140,000, total overhead costs for the year were $185,000, the
    goods available for sale totalled $380,000, and the cost of goods sold totalled $320,500.

    Required:
    Prepare a schedule of cost of goods manufactured and the cost of goods sold section of the company's
    income statement for the year.

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