Coming to this video many years down the line He's about to watch the world cup "I'm a bit of a super fan for Germany." Damn, this guy is about to have a really good day. Good for him, after saving our asses with this video.
Just earned 3 weeks of material in 10 minutes. One question. President's salary would not be considered direct labor or manufacturing overhead right? What about Plat Supervisor's salary? He is technically part of manufacturing so I am not sure.
Thank you so much but I am failing to interprete the additional information given to me when calculating my cost of goods manufactured. Let's say for instance I'm given $28600 as my water and electricity (30% is for water) with this additional information: During the year, the factory utilized 5 500 litres of water and 38 500 kilowatts of electricity while the office building utilized 2 750 litres and 11 000 kilowatts. The factory occupies 77% of the total property space. How do I interpret it and put everything on its rightful place
Can we account for the depreciation of the machines in the cost of goods? It seems that if the machines are being used to make the product (causing the wear and tear) should go into the cost to make the product because they will eventually need to be replaced. I am thinking from a start-up manufacturing and trying to figure out what the cost of each widget. Thanks
Well the depreciation cost is considered manufacturing overhead which goes into the cost of goods manufactured. In the end, it's factored into the cost of goods sold. 🤓
***** In class we have to find cogs for a manufacturing sector and cogs for a merchandising sector. Just wish you should the difference between the two, e.g. manufacturing has a cogm statement, while cogs for merchandising does not have a statement you just solve for cogs. However you didn't show how to find cogs for merchandising. I know solving for cogs for merchandising sector is easier than cogs for manufacturing... just wished you should the difference between the two. Its ok, I still love you. And as I've stated on other videos i keep showing people your vids and will continue to do so. you are awesome
dear, we add beg WIP(which are uncomp manufacturings of last year), to add them in the current years finished goods, ( as they r comp in current year), and less the uncomp( ending WIP) ,
This was very helpful - clear and simplified, but my accounting problem has 'Total manufacturing cost to account for' - what does this mean? I am unable to determine what information needs to go in this field....help!
Hey Christine, This isn't an income statement (which is what I think you're mixing it up with). An income statement can be prepared on a contribution (variable costs) or absorption basis (COGS includes both variable and fixed cost components). I'd suggest looking further into the playlist for the contribution method approach. Dave
DM used = RAWMbeg + RAWMpur = AVAILABLE RAWM - Ending Inv DL = Any label that produces products ex 12000$ label cost employees MOH = IM + IL + FR + FU or any thing that replayed to the factory. + WIPbeg - WIPend = COGM .. FGbeg + COGM = Available FG - FGendinv = COGS
ashfaq warraich if purchases not given then raw material beginning will be raw material available & if you want to find out purchases then make the statement in the sequence and leave purchase line see you have available rm - beginning rm you get purchases.