What is a Statement of Cost of Goods Manufactured?

A statement of cost of goods manufactured (COGM) is a financial statement that provides a detailed breakdown of the costs incurred during the production process. It is typically used by manufacturing companies to track and analyze their production costs, as well as to determine the total cost of goods manufactured for a given period.

The statement of cost of goods manufactured is divided into several sections, each of which represents a different stage of the production process. These sections include:

1. Raw Materials: This section details the cost of all the materials that were purchased during the period for use in the production process. It includes the cost of all raw materials that were purchased, as well as any freight or shipping costs associated with their delivery.
2. Work in Process: This section tracks the cost of all goods that are currently in the process of being manufactured but are not yet completed. It includes the cost of labor, materials, and overhead that have been incurred up to the current point in the production process.
3. Manufacturing Overhead: This section details the overhead costs that are associated with the production process but cannot be directly attributed to any one product. Examples of manufacturing overhead costs include rent, utilities, and depreciation.
4. Total Manufacturing Costs: This section provides the total cost of all goods that were manufactured during the period. It is calculated by adding together the costs of raw materials, work in progress, and manufacturing overhead.
5. Finished Goods: This section details the cost of all goods that were completed during the period and are ready to be sold. It includes the cost of all raw materials, labor, and overhead that were incurred during the production process.
6. Cost of Goods Sold: This section represents the cost of all goods that were sold during the period. It is calculated by subtracting the cost of finished goods from the total manufacturing costs.

A statement of cost of goods manufactured is a detailed financial statement that provides a breakdown of the costs incurred during the production process. It is an important tool for manufacturing companies to track and analyze their production costs, as well as to determine the total cost of goods manufactured for a given period.