The Cost of Goods Manufactured gives you an idea of where your money is going during each stage of the manufacturing process. It will also show you how and where you can save money in your business. Staying on top of your businesses financial statements is a highly important step toward reaching your goal for profits. The formula is: your beginning finished goods inventory + the cost of goods
. manufactured = finished goods available for sale - the ending finished goods inventory = the cost of goods sold. You will want to have your accountant verify the numbers for your quarterly or annual tax prep. For more information concerning cost of goods sold, inventory calculation, or product cost, visit this website:http://blog.accountingcoach.com/manufacturing-cost-goods-sold/.
