Calculating the cost of goods manufactured:
Direct Materials:
Raw materials inventory, beginning
+Purchase Raw materials
Raw materials available to use
-Raw materials inventory, ending
= Raw materials used in production xxx
Direct labour
Manufacturing overheads
Total manufacturing cost xxx
+work in progress inventory, beginning
-Work in progress inventory, ending
Cost of goods Manufactured xxx
Cost of goods sold
Cost of good manufactured
+Finished goods inventory, beginning
Goods available for sale
-Finished goods inventory, ending
Cost of goods Sold