To get success in Manufacturing, it is mandatory for all manufacturers to know "How to Calculate Manufacturing Cost of Finished Goods" Formula for calculating manufacturing cost is given as under :-
- Raw Material Consumed ______
- Direct Manufacturing Wages _____
- Direct Manufacturing Expenses ____
- Prime Cost ____
- Indirect Manufacturing Expenses or Manufacturing Overhead _____
- Total Manufacturing Cost. _________
Raw Material consumed is arrived at after adjustment of opening and closing stock of raw materials :-
Raw Material consumed = Opening Stock of Raw Material+Purchases-Closing Stock of Raw Material
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