Practice Problem
COGM
For the month of January, ABC Firm reported the following:
Direct Materials
WIP
Finished Goods
January 1
$24,500
57,300
133,400
Sales
Salaries
Direct labour
Indirect labour
Sales staff
Administrative support
Depreciation
Utilities for factory
Purchases of direct materials
Purchases of supplies for office
Utilities for sales facility
Insurance for factory
Life Insurance for CEO
Rent
Factory
Finished goods warehouse
Office Building
1.
2.
3.
4.
5.
Compute OH for the month.
Compute DM Used for the month.
Compute COGM for the month.
Compute COGS for the month.
Compute gross margin for the month.
January 31
$9,700
79,300
22,400
1,356,000
432,500
88,300
219,000
86,300
99,800
16,300
57,800
10,450
21,300
22,500
15,600
34,900
12,600
28,500