How To

How to Calculate Total Manufacturing Cost

Before you can set a price for any item you manufacture, you must calculate the per-unit manufacturing cost. This product cost calculation includes elements such as the cost of raw materials, direct labor, and overhead costs. The price you set determines your profit margin. Define Total Manufacturing Cost The accounting and business term, total manufacturing cost, also called cost …

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How to Record a Journal Entry for Cost of Goods Sold

When recording journal entries for the cost of goods sold, accountants work in tandem with manufacturing or operations to ensure they’re booking the correct costs. Support from production personnel is essential to back-up journal entries and remain compliant with U.S. GAAP. These points and those below are part of the inventory cost recordation process. What is Cost of …

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