Schedule of Cost of Goods Manufactured

							     Schedule of Cost of Goods Manufactured
Direct Materials
•   Raw material inventory, beginning
•   Add: Raw materials purchased
•   Raw materials available for use
•   Deduct: Raw material inventory, ending
•   Total: Raw material used
Direct Labor
Manufacturing Overhead
•   Indirect Material                        Direct Materials
                                             Add: Direct Labor
•   Add: Indirect labor
                                             Add: Manufacturing Overhead
•   Add: Rent on factory building            Total: Manufacturing Costs Incurred
•   Add: Depreciation on factory equipment   Add: Work in Process, Beg. Period
•   Add: Utilities                           Manufacturing Costs to Account For
•   Add: Property taxes                      Deduct: Work in Process, End Period
                                             Cost of Goods Manufactured
•   Add: Insurance
•   Total Manufacturing Overhead             Transferred to Schedule of Cost of
•   Deduct: Underapplied overhead            Goods Sold
•   Total: Overhead applied to work in
    process
                 Job Order Costing
     A visual representation of the Schedule of Cost of Goods Manufactured

                                                                            Conversion
                                                                            Costs
          Direct
          Material
                       Indirect materials                     Direct        Manufacturing
          Purchased
                       (Lubricants, bolts,   Direct Material- Labor-Job 2   Overhead Applied to
                       etc.)                 Job 2                          Job 2




                 End
    Beg          MIP
    MIP
                                                                Job 2

                                        Beg                                                 End
                                        WIP                                                 WIP
                     Directly to                     Job 1                   Job 3
                     Manufacturing
                     Overhead                                FACTORY
Direct Material Used Control

STOREROOM
            Schedule of Cost of Goods Sold

•   Finished Goods Inventory, Beginning of Period
•   Add: Cost of Goods Manufactured
•   Cost of Goods Available for Sale
•   Deduct: Finished Goods Inventory, End of Period
•   Cost of Goods Sold
•   Deduct: Over Applied or Under Applied Overhead
•   Total: Cost of Goods Sold (Adjusted)
            Transferred to Income Statement
                        Income Statement

•   Sales Revenue
•   Deduct: Cost of Goods Sold (Adjusted)
•   Gross Margin
•   Deduct: Selling and Administrative Expenses
•   Income before Taxes
•   Deduct: Income Tax Expense
•   Total: Net Income