Cost of Goods Manufacture (COGM) & Work-in-Process Calculation in Woven Garments.
Cost of goods manufacture (COGM) * Work-in-Process is an important tool for calculating total inventory in woven garments. It’s a demandable calculation for another stack holder. One of these stack holder banks is the vital role of this inventory report. Because the bank is aware of distributing his limit loan depended on that report.
The below table is for your information to calculate the cost of goods manufacture of finished goods.
| Jun-21 | Particulars | Value | Qty. | Production. Qty. | WIP Calculation: | |
| Materials (Fabric+Trims) | 868,547 | Opening Fabric | 59,673 | |||
| WIP | 40,630 | 28,211 | 240,557 | Fabric Issue to Cutting- | 195,657 | |
| Finished Goods | 43,455 | 16,893 | Fabric Use for Production- | 228,529 | ||
| Closing Balance | 26,801 | |||||
| Equivalent WIP Qty. | 28,211 | |||||
| WIP | ||||||
| Quantity | 28,211 | |||||
| Material | 26,801 | |||||
| Factory Over Head (FOH) | 27,658 | |||||
| Allocation FOH | 13,829 | |||||
| WIP valuation | 40,630 |
| As of 30 Jun-2021 | |||||||
| Finished Goods Report | |||||||
| Buyer | Opening Qty. | Received Qty. | Total Stock | Ex-Factory Qty. | Ex. Fac. In % | Closing Balance Qty. | Closing % |
| Gorge | 2,316 | 1,802 | 4,118 | 4,118 | 2% | – | 0% |
| Debenhams | – | 1,833 | 1,833 | 1,833 | 1% | – | 0% |
| Tesco | 4,173 | 26,916 | 31,089 | 28,935 | 12% | 2,154 | 13% |
| H&M | 78,714 | 102,035 | 180,749 | 170,152 | 72% | 10,597 | 63% |
| Li & Fung | – | 2,390 | 2,390 | – | 0% | 2,390 | 14% |
| Zara | – | 752 | 752 | – | 0% | 752 | 4% |
| Pull & Bear | 7,450 | 25,189 | 32,639 | 31,639 | 13% | 1,000 | 6% |
| Total | 92,653 | 160,917 | 253,570 | 236,677 | 100% | 16,893 | 100% |
| Particulars | Qty. | COGM USD | Rate | ||||
| Opeing | 92,653 | 170,253 | 1.84 | ||||
| Add. Received | 160,917 | 482,021 | 3.00 | ||||
| Less: Ex-Factory | 236,677 | 608,819 | 2.57 | ||||
| Closing | 16,893 | 43,455 | 2.57 |
| FOB/Pcs | D. Mat. & Emb. % | Total FOB | D. Mat. & Emb. | Fact. OH | COGM | Man Hr./pcs | Man Hour |
| 5.86 | 56% | 10,554 | 5,950 | 2,114 | 8,065 | 0.66 | 1,188 |
| 2.99 | 51% | 5,475 | 2,800 | 969 | 3,769 | 0.30 | 544 |
| 4.60 | 59% | 123,814 | 72,535 | 79,816 | 152,352 | 1.67 | 44,841 |
| 1.20 | 44% | 122,897 | 54,091 | 73,728 | 127,819 | 0.41 | 41,420 |
| 2.58 | 42% | 6,160 | 2,606 | 3,922 | 6,528 | 0.92 | 2,204 |
| 5.39 | 71% | 4,053 | 2,886 | 1,378 | 4,264 | 1.03 | 774 |
| 7.16 | 77% | 180,438 | 138,625 | 40,600 | 179,225 | 0.91 | 22,809 |
| 26.84 | 57% | 453,390 | 279,495 | 202,527 | 482,021 | 0.84 | 113,779 |
If you didn’t understand the above calculation for COGM & WIP in woven garments, Please watch the below video.