The Cost of Goods Manufactured (COGM) represents the total production cost of finished goods transferred from a production facility to inventory over an accounting period.
A manufacturing account, or manufacturing statement, is an accounting statement forming part of the internal final accounts of a manufacturing organization; for a particular period, it is constructed to show direct cost of sales, manufacturing overhead, total production cost, and cost of goods manufactured. In some cases, a manufacturing profit is also computed.
Understand in detail the various expenses incurred during the manufacturing process, including direct materials, direct labor, direct expenses, and manufacturing overhead.
The difference between the value of goods transferred from a manufacturing account to a trading account at a price other than the cost of goods manufactured and the actual cost of goods manufactured.
The total of all the costs incurred in producing a product or cost unit. In a manufacturing account, the production cost is represented by the total of the direct cost of sales and the manufacturing overhead.
