Understanding COGM Calculations
This calculator computes the Cost of Goods Manufactured (COGM) based on direct materials, direct labor, manufacturing overhead, and work-in-process inventory, with support for multiple currencies.
COGM represents the total cost of producing goods completed during a period. The formula is Total Manufacturing Costs (Direct Materials + Direct Labor + Overhead) + Beginning WIP - Ending WIP.
Example COGM Calculations
| Direct Materials | Direct Labor | Overhead | Beginning WIP | Ending WIP | COGM |
|---|---|---|---|---|---|
| $10,000 | $5,000 | $3,000 | $2,000 | $1,500 | $18,500 |
| $50,000 | $20,000 | $15,000 | $10,000 | $8,000 | $87,000 |
| $100,000 | $40,000 | $30,000 | $20,000 | $15,000 | $175,000 |
How to Use the COGM Calculator
- Select the currency for cost inputs.
- Enter the costs for direct materials, direct labor, and manufacturing overhead.
- Enter the beginning and ending work-in-process (WIP) inventory values.
- Click "Calculate COGM" to view the total manufacturing costs and COGM.
Cost Components Breakdown
Breakdown of direct materials, direct labor, overhead, and net WIP impact in COGM.
Frequently Asked Questions
What is Cost of Goods Manufactured (COGM)?
COGM is the total cost of producing goods completed during a period, including materials, labor, overhead, and net WIP inventory changes.
Why is COGM important?
COGM is critical for financial reporting, inventory valuation, and determining the cost of goods sold (COGS) for accurate profit calculations.