Main Content

Lesson 1: Course Orientation and Defining Managerial Accounting

Calculating COGS

Self-Check Activity

Use the following business information to practice calculating the cost of goods sold. Enter the necessary numbers in the boxes below, then click the "Show Answer" button after each step to ensure that your calculations are correct.

Self-Check Business Information
Beginning Direct Materials Inventory $ 650,000
Ending Direct Materials Inventory $ 480,000
Direct Materials Purchases $ 870,000
Beginning Work in Process Inventory $ 150,000
Ending Work in Process Inventory $ 250,000
Direct Labor $ 400,000
Factory Overhead $ 200,000
Beginning Finished Goods Inventory $ 500,000
Ending Finished Goods Inventory $ 450,000


HINT: Hover your mouse pointer over a step number below to view the step's formula if you need it.

STEP 1: Determine the Cost of Materials Placed into Production

 


+   
-   
                                          

 

 

 

STEP 2: Determine the Cost of Goods Manufactured
 

 


+   
+   
+   
-   
                                          

 

 

 

STEP 3: Determine the Cost of Goods Sold

 


+   
-   
                                          

 

 


Top of page