https://file.aiquickdraw.com/mathbot/file/1725986921814kaq5kbum.jpg

To prepare the **Cost of Goods Manufactured (COGM) schedule for Gen AI Company for the year 2023**, we will follow the standard format. The COGM schedule calculates the total manufacturing costs, including direct materials, direct labor, and manufacturing overhead, to determine the cost of goods manufactured for the period.

We will use the given data from the image to create the schedule. The format is typically as follows:

### Gen AI Company
**Cost of Goods Manufactured Schedule**
For the Year Ending December 31, 2023

1. **Direct Materials:**
   - Raw materials, beginning (1/1/23): $30,000
   - Add: Purchases of raw materials: $205,000
   - Raw materials available for use: $235,000
   - Less: Raw materials, ending (12/31/23): $20,000
   - **Raw materials used in production**: $215,000

2. **Direct Labor:**
   - Direct labor: $350,000

3. **Manufacturing Overhead:**
   - Indirect materials: $15,000
   - Factory manager’s salary: $35,000
   - Insurance, factory: $14,000
   - Property taxes, factory: $6,000
   - Factory machinery rent: $40,000
   - Factory utilities: $65,000
   - Depreciation, factory building: $24,000
   - Indirect labor: $90,000
   - **Total Manufacturing Overhead**: $289,000

4. **Total Manufacturing Costs (1 + 2 + 3)**:
   - Raw materials used: $215,000
   - Direct labor: $350,000
   - Manufacturing overhead: $289,000
   - **Total manufacturing costs**: $854,000

5. **Add: Work in process, beginning (1/1/23)**: $80,000

6. **Less: Work in process, ending (12/31/23)**: $50,000

7. **Cost of Goods Manufactured (4 + 5 - 6)**:
   - Total manufacturing costs: $854,000
   - Add: Work in process, beginning: $80,000
   - Less: Work in process, ending: $50,000
   - **Cost of Goods Manufactured**: **$884,000**

This is the total cost of goods that were manufactured by the company during the year.

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Let me know if you need further details or any additional questions!

### 5 Related Questions:
1. How is the total manufacturing overhead calculated in a COGM schedule?
2. What is the difference between direct materials and indirect materials?
3. Why is it important to include both beginning and ending work in process inventories?
4. How do direct labor costs impact the cost of goods manufactured?
5. How would an increase in raw material prices affect the COGM?

### Tip:
When preparing a COGM schedule, always ensure to differentiate between manufacturing overhead costs and administrative expenses, as only the former is included in the calculation.

Prepare a cost of goods manufactured schedule for Gen AI Company for 2023.

Learn how to prepare a cost of goods manufactured (COGM) schedule for Gen AI Company for the year 2023, using raw material costs, direct labor, and manufacturing overhead. Detailed breakdown of each cost component with the formula for calculating the total cost of goods manufactured.

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