1. Schedule of Cost of Goods Manufactured
Direct Materials
Raw material inventory, beginning
Add: Raw materials purchased
Raw materials available for use
Deduct: Raw material inventory, ending
Total: Raw material used
Direct Labor
Manufacturing Overhead
Indirect Material
Add: Indirect labor
Add: Rent on factory building
Add: Depreciation on factory equipment
Add: Utilities
Add: Property taxes
Add: Insurance
Total Manufacturing Overhead
Deduct: Underapplied overhead
Total: Overhead applied to work in process
Direct Materials
Add: Direct Labor
Add: Manufacturing Overhead
Total: Manufacturing Costs Incurred
Add: Work in Process, Beg. Period
Manufacturing Costs to Account For
Deduct: Work in Process, End Period
Cost of Goods Manufactured
Transferred to Schedule of Cost of Goods Sold

2. Job Order Costing A visual representation of the Schedule of Cost of Goods Manufactured
Conversion Costs
Direct Material Purchased
Indirect materials (Lubricants, bolts, etc.)
Direct Labor-Job 2
Manufacturing Overhead Applied to Job 2
Direct Material-Job 2
End MIP
Beg MIP
Job 2
End WIP
Beg WIP
Job 1
Job 3
Directly to Manufacturing Overhead Control
FACTORY
Direct Material Used
STOREROOM

3. Schedule of Cost of Goods Sold
Finished Goods Inventory, Beginning of Period
Add: Cost of Goods Manufactured
Cost of Goods Available for Sale
Deduct: Finished Goods Inventory, End of Period
Cost of Goods Sold
Deduct: Over Applied or Under Applied Overhead
Total: Cost of Goods Sold (Adjusted)
Transferred to Income Statement

4. Income Statement Sales Revenue Deduct: Cost of Goods Sold (Adjusted)
Gross Margin
Deduct: Selling and Administrative Expenses
Income before Taxes
Deduct: Income Tax Expense
Total: Net Income