Cost of production & cost of goods manufacturing Calculated from the following

format:

Opening Stock Raw Material

Add(+): Purchases of Raw Material

Add(+): Purchase expenses (Freight etc.)

Less(-): Purchase return of Raw Material

Less(-): Closing Stock OF Raw Material

Raw Material Consumed ( used )

Add(+): Direct labor (wages)

Prime Cost

Add(+): Factory Overheads : all manufacturing

expenses

The Cost of Production over the period

Add(+): Opening Stock of Work in Process

(WIP)

Less(-): Closing Stock of Work in Process (WIP)

Cost of Goods Manufactured

Add(+): Opening Stock Finished goods

Less(-): Closing Stock Finished goods

Cost of Goods Sold