How to Calculate COGS for a Manufacturer

This video shows an example of how to calculate Cost of Goods Sold for a manufacturer.
Manufacturers cannot calculate Cost of Goods in the same way that a retailer calculates Cost of Goods Sold, because manufacturers build their own inventory (in contrast to retailers, which purchase their inventory).
For manufacturing firms, Cost of Goods Sold is equal to the beginning Finished Goods Inventory plus Cost of Goods Manufactured minus ending Finished Goods Inventory.
To calculate Cost of Goods Manufactured, you add the total manufacturing costs to the beginning Work-in-Process Inventory and then subtract the ending Work-in-Process Inventory.
Total manufacturing costs are direct materials used, direct labor, and manufacturing overhead.-
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[@APEINVESTMENT]

loud and clear!! thanks a lot

[@mushroomthump]

Very clear and easy to understand. You the man!

[@juansebastiansuavitaagudel9241]

Your playlist is very useful! i understand everything!!!

[@ramisaleh6793]

You are just Amazing !

[@kimdaleman]

your videos are seriously so helpful ;')

[@MyFinancialFocus]

Great video 👍

[@jetjet8996]

First, also thanks for this information man really appreciate it

[@samuelmaiia]

Hi,
What’s is considered ‘raw material purchase’?
I am just a bit confused as we use to place call offs and schedule orders. For instance, If I place an order for 5000 of product x and I can call them off whenever I want for the next 24 months. I haven’t paid a penny yet. Would I considered that order for COGM?
Many thanks

[@backpacker1908]

thanks for the video, very clear and helpful

[@Edspira]

Glad it was helpful!

[@fazoodle7972]

fantastic! thank you so much youtube teacher

[@Edspira]

no problem!

[@arifpathan8520]

Deserves more likes

[@user-kx7ch2ye9z]

First I want to thank you very much
Second I wonder if I have packing inventories that is consider from cogs item or not

[@parnessianparpio1320]

Would packaging be included in the sum for finished goods?

[@kyusunkim2629]

is rent excluded from cogs?

[@killerzcat]

Can you explain work in progress more please?

[@Edspira]

Work-in-process inventory is partially-completed inventory. If you walked into a Tesla factory and saw a partially-constructed car, that would be part of work-in-process inventory

[@jonaskonig9090]

Ma men