Manufacturing Accounts: Fill In the Blanks
Net sales - Cost of goods sold =
Cost of goods sold = Opening finished goods +
- closing finished goods.
Cost of goods manufactured = Opening WIP +
- closing W.I.P.
Direct labor + Direct material consumed + Factory overhead =
Opening WIP + Factory cost - Closing WIP =
Raw materials (RM) consumed = Opening RM + RM purchased during the period -
Manufacturing concerns convert raw materials into
Direct materials are those materials that can be directly charged to a
All expenses other than direct materials and direct labor incurred in manufacturing a product are called
If predetermined factory overheads are less than actual factory overheads, this is known as
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.