{
  "id": "cogm",
  "version": "1d4147e54cae",
  "status": "published",
  "name": "COGM Calculator",
  "question": "What is my COGM?",
  "summary": "Computes the cost of goods manufactured (COGM) from direct materials, direct labor, manufacturing overhead and work in process, with cost of goods sold.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/cogm-calculator",
  "markdown": "https://www.acalculator.org/finance/cogm-calculator.md",
  "kind": "function",
  "method": "Direct materials used = raw materials at the start + purchases − raw materials at the end (or as entered). Total manufacturing costs = direct materials used + direct labor + manufacturing overhead. COGM = work in process at the start + total manufacturing costs − work in process at the end. Cost of goods sold = finished goods at the start + COGM − finished goods at the end.",
  "assumptions": [
    "All amounts are for the same period, from the factory’s records.",
    "Manufacturing overhead is the overhead charged to production in the period.",
    "Arithmetic is exact on the typed decimals; money shows to the cent, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "dmfrom": {
        "title": "Direct materials",
        "description": "Enter the materials used in production, or work them out from raw materials purchases.",
        "type": "string",
        "enum": [
          "used",
          "purchases"
        ]
      },
      "dm": {
        "title": "Direct materials used",
        "description": "Raw materials that went into production this period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "rm0": {
        "title": "Raw materials at the start",
        "description": "Raw materials inventory at the start of the period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "pur": {
        "title": "Raw materials purchased",
        "description": "Net purchases of raw materials during the period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "rm1": {
        "title": "Raw materials at the end",
        "description": "Raw materials inventory at the end of the period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "dl": {
        "title": "Direct labor",
        "description": "Wages of the workers who make the product.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "moh": {
        "title": "Manufacturing overhead",
        "description": "Other factory costs: indirect materials and labor, factory rent, utilities and depreciation.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "wip0": {
        "title": "Work in process at the start",
        "description": "Partly finished goods at the start. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "wip1": {
        "title": "Work in process at the end",
        "description": "Partly finished goods at the end. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "fg0": {
        "title": "Finished goods at the start",
        "description": "Finished goods inventory at the start, for cost of goods sold. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "fg1": {
        "title": "Finished goods at the end",
        "description": "Finished goods inventory at the end, for cost of goods sold. Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "cogm": {
      "label": "Cost of goods manufactured (COGM)",
      "description": "Total manufacturing costs + beginning work in process − ending work in process.",
      "format": "money"
    },
    "total": {
      "label": "Total manufacturing costs",
      "description": "Direct materials used + direct labor + manufacturing overhead.",
      "format": "money"
    },
    "materialsUsed": {
      "label": "Direct materials used",
      "description": "As entered, or raw materials at the start + purchases − raw materials at the end.",
      "format": "money"
    },
    "inProcess": {
      "label": "Total cost of work in process",
      "description": "Beginning work in process + total manufacturing costs.",
      "format": "money"
    },
    "cogs": {
      "label": "Cost of goods sold",
      "description": "Beginning finished goods + COGM − ending finished goods. Shown when you enter both.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "dmfrom": "used",
      "dm": 15000,
      "rm0": 10000,
      "pur": 50000,
      "rm1": 12000,
      "dl": 25000,
      "moh": 23000,
      "wip0": 75000,
      "wip1": 43000,
      "fg0": 65000,
      "fg1": 58000
    },
    "outputs": {
      "cogm": 95000,
      "total": 63000,
      "materialsUsed": 15000,
      "inProcess": 138000,
      "cogs": 102000
    },
    "text": "Direct labor of $25,000.00 and overhead of $23,000.00 bring total manufacturing costs to $63,000.00, and the cost of goods manufactured is $95,000.00."
  },
  "examples": [
    {
      "given": {
        "dmfrom": "used",
        "dm": 15000,
        "dl": 25000,
        "moh": 23000,
        "wip0": 75000,
        "wip1": 43000,
        "fg0": 65000,
        "fg1": 58000
      },
      "expect": {
        "cogm": 95000,
        "total": 63000,
        "materialsUsed": 15000,
        "inProcess": 138000,
        "cogs": 102000
      },
      "source": "OpenStax, Principles of Managerial Accounting, 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations (schedule of cost of goods manufactured; Koeller Manufacturing). https://openstax.org/books/principles-managerial-accounting/pages/2-1-distinguish-between-merchandising-manufacturing-and-service-organizations: 15,000 + 25,000 + 23,000 = 63,000; 75,000 + 63,000 = 138,000; 138,000 − 43,000 = 95,000; 65,000 + 95,000 − 58,000 = 102,000"
    },
    {
      "given": {
        "dmfrom": "purchases",
        "rm0": 10000,
        "pur": 50000,
        "rm1": 12000,
        "dl": 30000,
        "moh": 22000,
        "wip0": 5000,
        "wip1": 8000
      },
      "expect": {
        "cogm": 97000,
        "total": 100000,
        "materialsUsed": 48000,
        "inProcess": 105000
      },
      "source": "OpenStax, Principles of Managerial Accounting, 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations (schedule of cost of goods manufactured; Koeller Manufacturing). https://openstax.org/books/principles-managerial-accounting/pages/2-1-distinguish-between-merchandising-manufacturing-and-service-organizations (direct materials used = beginning materials + purchases − ending materials); hand calculation in content.mdx: 10,000 + 50,000 − 12,000 = 48,000; 48,000 + 30,000 + 22,000 = 100,000; 100,000 + 5,000 − 8,000 = 97,000"
    },
    {
      "given": {
        "dmfrom": "used",
        "dm": 12500.5,
        "dl": 8000.25,
        "moh": 4100.75
      },
      "expect": {
        "cogm": 24601.5,
        "total": 24601.5,
        "inProcess": 24601.5
      },
      "source": "hand calculation in content.mdx: 12,500.50 + 8,000.25 + 4,100.75 = 24,601.50"
    }
  ],
  "sources": [
    "OpenStax, Principles of Managerial Accounting, 2.1 Distinguish between Merchandising, Manufacturing, and Service Organizations: the schedule of cost of goods manufactured (beginning work in process + direct material + direct labor + manufacturing overhead − ending work in process), direct materials used (beginning materials inventory + net purchases − ending materials inventory) and cost of goods sold (beginning finished goods + COGM − ending finished goods); Koeller Manufacturing (COGM $95,000, cost of goods sold $102,000). https://openstax.org/books/principles-managerial-accounting/pages/2-1-distinguish-between-merchandising-manufacturing-and-service-organizations (retrieved 2026-10-19)"
  ],
  "related": [
    "variable-cost",
    "gross-profit",
    "break-even",
    "operating-income"
  ],
  "changelog": []
}