The COGM schedule, straight from your ledger
Direct materials, direct labor, and manufacturing overhead flow through WIP to cost of goods manufactured, then to cost of goods sold - computed from the same postings that run your factory.
Illustrative product view
The COGM schedule
The cost of goods manufactured (COGM) schedule is the standard manufacturing bridge from input costs to what you can sell. It sums direct materials used, direct labor, and applied overhead into total manufacturing cost, adjusts for the change in WIP to get COGM, then adjusts for the change in finished goods to get cost of goods sold.
COGM and COGS
COGM = (DM + DL + MOH) + beginning_WIP − ending_WIP; COGS = beginning_FG + COGM − ending_FG
Total manufacturing cost is direct materials used plus direct labor plus manufacturing overhead applied. WIP and finished-goods changes convert it to COGM and then COGS.
The schedule, line by line
| Line | Adds / subtracts |
|---|---|
| Direct materials used | + |
| Direct labor | + |
| Manufacturing overhead applied | + |
| = Total manufacturing cost | |
| Beginning WIP | + |
| Ending WIP | − |
| = Cost of goods manufactured | |
| Beginning finished goods | + |
| Ending finished goods | − |
| = Cost of goods sold |
How Fintra builds it
- Direct materials, labor, and overhead come from work-order postings, not a separate model.
- You supply beginning and ending WIP and finished goods for the period.
- The schedule computes total manufacturing cost, COGM, and COGS in one report.
Why the COGM schedule matters
The COGM schedule is how a manufacturer explains its cost of goods sold to lenders, auditors, and leadership. Because Fintra derives it from real work-order postings rather than a spreadsheet, the schedule reconciles to the inventory and WIP accounts on your balance sheet.
Frequently asked questions
What is cost of goods manufactured?
Cost of goods manufactured (COGM) is the total cost of goods completed during a period. It equals direct materials used plus direct labor plus manufacturing overhead applied, adjusted for the change in work-in-process. It’s the bridge between production costs and cost of goods sold.
What is the difference between COGM and COGS?
Cost of goods manufactured is the cost of units finished during the period; cost of goods sold is the cost of units sold. They differ by the change in finished-goods inventory: COGS equals beginning finished goods plus COGM minus ending finished goods.
How does Fintra calculate the COGM schedule?
It pulls direct materials, direct labor, and applied overhead from your work-order postings for the period, then applies the beginning and ending WIP and finished-goods balances you provide to compute total manufacturing cost, COGM, and COGS in one schedule.
Why do I need a COGM schedule?
It explains how production cost becomes cost of goods sold - the number lenders, auditors, and leadership scrutinize. Deriving it from real postings means the schedule ties back to the inventory and WIP accounts, rather than being a standalone spreadsheet that might not reconcile.
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