Cost of goods manufactured (COGM):
1.BegInventory+material purchased= total- end inventory=costofdirectmatused
2.Direct materials used+directlabor+factoryOH = total manufacturing cost
3.Beg. WIP+ total manufacturing cost= total - End WIP= COGM!!
Cost of goods sold:Beg finished good+ COGM= total - ending finishedgood
Purchase materials: materials. debit. Accts payable. credit
Requisition form (request materials to start production): WIP.Debit.Materials. Credit
direct labor cost: workinprocess. Debit. Wages payable. Credit
ACTUAL factory OH: Factory OH. Debit. Materials, wages payable, utilities payable, depreciation. Credit
direct labor hours, direct cost and machinery hours are activity bases
predetermined factory overhead cost: estimated total factory OH cost / estimated activity base.
APPLIED factory OH: WIP. Debit. Factory OH.Credit
Underapplied (applied < actual). COGS. Debit Factory OH. Credit
when goods are sold: A/R. Debit(price sold). Sales. Credit
COGS. Debit (total cost). Finished goods. Credit
to transfer WIP to finished goods. Finished goods. Debit. WIP credit