How do you calculate the cost of goods manufactured?

Answer by  hosneymaruf (182)

At first you have to calculate prime cost by subtracting direct expenses from raw material consumed. Then add the manufacturing or factory overhead like rent, indirect wages, salary, depreciation and that calculates the total manufacturing cost. Then add opening working process and subtract ending working process and that calculates the cost of goods manufactured.

Answer by  shareej (6)

There are two basic methods for pricing goods. One is to make the product, calculate the cost of making it, and add a percentage mark-up (the profit) to arrive at the price. The other is to make a judgement as to the price a product.