🏭Manufacturing Cost Formulas
Prime Costs
Direct Materials + Direct Labor = Prime Costs
What It Means
The primary costs that go directly into products.
Related Formulas
Conversion Costs
Direct Labor + Manufacturing Overhead = Conversion Costs
Total Manufacturing Costs
Direct Materials + Direct Labor + Manufacturing Overhead = Total Manufacturing Costs
Cost of Goods Manufactured (COGM)
Beginning WIP + Total Manufacturing Costs - Ending WIP = COGM
Predetermined Overhead Rate
Estimated Total Mfg Overhead ÷ Estimated Allocation Base = Predetermined OH Rate
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