Cost of Goods Manufactured (COGM) Calculator

Direct Materials (DM):
Direct Labor (DL):
Beginning Work in Progress (BWIP):
Ending Work in Progress (EWIP):

Cost of Goods Manufactured Calculator

The Cost of Goods Manufactured (COGM) Calculator is a tool used in managerial accounting to calculate the total cost incurred in the production of goods during a specific period. It includes the direct materials, direct labor, and manufacturing overhead costs associated with manufacturing the products.

Formula

The formula for calculating COGM is as follows:

COGM = Opening Work-in-Progress Inventory + Total Manufacturing Costs – Closing Work-in-Progress Inventory

In simpler terms, COGM is the sum of the costs of materials, labor, and overhead used to produce the goods, adjusted for the change in work-in-progress inventory.

Example

If the opening work-in-progress inventory is \$10,000, the total manufacturing costs are \$50,000, and the closing work-in-progress inventory is \$8,000, the COGM would be \$10,000 + \$50,000 – \$8,000 = \$52,000. This means that \$52,000 worth of goods was manufactured during the period.