[Anonymous]

To those studying for BEC, I know my formulas but I am just confused-how do COGM tie into WIP and how does COGS tie into Finished Goods? Looking at BASE formulas it’s kind of the same but kind of not-I know my formulas, but feel like I am not grasping it conceptually… Any and all help is appreciated!

[cpaMD86]

COGM is what results of your WIP, COGS is Finished Goods.
The flow is Raw Materials –> WIP –> Finished Goods.

WIP:

Beg + Total Mfg Costs (RM Used+DL+Applied OH) – End = COGM

Finished Goods:

Beg + COGM – END = COGS

FAR: 9/3

[Anonymous]

cpaMD86-that's what I thought and even started writing COGM under my WIP formula but wasn't entirely positive-thank you!

[Author]

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