Direct expenses mean wages in production of products in factory. Or in purchase of goods and bring to factory. Direct expenses mean only production and purchase expenses only
Really well explained! Sir, could you please do a video on different types of financial statements ( SOCI, SOFP, CFS, SOCIE) explaining the purpose & line items of the statements. Thanks
Hello there, i need your help with this question. In 2021 company purchased direct raw material USD50,000, and direct labor cost USD21,000. Raw material opening 35,500 Raw material closing 12,900 Work in process opening 8,000 Work in proses closing 5,050 Finished goods Opening 7,075 Finished good Closing 6,475 Indirect Material 9,500 Indirect labor 7,450 Selling and administrative Expenses 3,370 Depreciation 1200 Utilities 1,100 Others 800 Prepare Cost of goods sold schedule for the company.
Op RM 35500 + Purchase of RM 50000 - cl RM 12900 = RM consumed 72600 Op WIP 8000 + RM consumed 72600 + Direct labour cost 21000 - Cl WIP 5050 = cost of production 96550 Op FP 7075 + cost of production 96550 + ind materials 9500 + ind labour 7450 - cl FP 6475 = COGS 114100 COGS 114100 + selling and adm expense 3370 = cost of sales 117470 This is as per best of the information available. Assuming Indirect mat and labour to be a part of COGS. Depreciation, utilities and others are taken as Indirect expenses of business so not a part of COGS and COS. Hope it helps.
@@camanishmahajan hi sir, after I checked with my friends, they told me "Do not include selling & administrative expenses into your manufacturing overhead ya.." so they get answer which is 117200
thank you sir. You made it very clear to me. Please correct me if I'm wrong., "The electricity, wages, rent of a factory is also a direct expense and that adds to the COGS." Is that right sir?
The concept of COGS will remain same for all types of finished goods meant for resale. You can apply the formula for all types of products separately to calculate COGS for each type of product and then add all to get total combined COGS.
@@camanishmahajan my difficulties is that my products is spare parts. Due to dollar fexactuation cost price is changes most of. I cant fix the sale price, we also loss. Which method can apply for the fixing the sale price.
Sir G minus Closing stock Q karte hai samjhe nhi aaya kiyo ki woh to hamre pass already hai or purchase ki to woh us closing stock mai plus ➕ kiyo nhi hota hai please reply today🙏🙏🙏
Coz we are finding the value of only those goods which are sold. COGS is the cost of only those goods which have been sold. Therefore closing stock which is unsold is reduced from the total goods available for sale.
@@camanishmahajan1/4/2021 To 31/3/2022 Tak jitna bhee goods sales kiya hai woh COGS or Jo 31March ko bacha hai woh closing right es liye closing ko Minus➖ karte hai correct✅ reply 🙏
All these are self written books and notes provided to students. Available with recorded lectures on our mobile app on playstore. Concepts Commerce Academy
@@camanishmahajan sir am from engineering background currently pursuing investment banking course and i want understand the basics, i was following your youtube videos and they are very helpful especially this one COGS. can you plz helpwhich books should i refer. cz the notes that you have shown in video is very good and to the point..
Thanks for the appreciation. You can buy T.S grewal, Juneja chawla, Sandeep garg or dk goyal. All these are good books. I have used all these books myself and for teaching purposes.
Gp is only a trading margin. Whereas Ebit is the net profit after all expenses but before interest expense and tax. So GP is essentially after direct expenses but before Indirect expenses. But Ebit is afyer all direct and Indirect expenses except interest.
Tomorow is my paper of accounts and does not knowledge of COGS sums your COGS explane in very easy method thanks sir 🔥🔥
That's great. Happy that u understood.
Good luck
Keep learning 👍
Sir apne apne bahut ache se direct expenses aur COGS ke concepts clear kiya h 🙏🙏🙏
Thanks Prashant.
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Direct expenses mean wages in production of products in factory.
Or in purchase of goods and bring to factory.
Direct expenses mean only production and purchase expenses only
Indirect expenses mean salary.
Indirect expenses not contribute directly in production or purchase of goods.
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Gr8. Hope u score well. 👍
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Concept clear thanks
Need rectification of errors video sir. You are a true teacher.
Yes. It will be uploaded in a couple of days. Stay tuned in.
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well explained,thanks....
COGS=OPENING STOCK+net purchase+direct expenses-closing stock
Really helpful the way you explain in detail....
Gr8 Amit.
Keep learning form our channel and view our Playlist for more such concepts.👍
Really well explained! Sir, could you please do a video on different types of financial statements ( SOCI, SOFP, CFS, SOCIE) explaining the purpose & line items of the statements.
Thanks
Thanks Mathew for the appreciation.
Will look forward to doing so in future.
Really helpful sir..🙏
Keep learning 👍
Nice class sir m grade1 ki preparation ker rhi hu 👏
Thanks aradhya.
Keep learning and keep growing with us👍
Thank you very very much sir very well explained 💯💯
Keep learning and growing 👍
Namaste sir
Dhanywad🙏🏻
Hello there, i need your help with this question. In 2021 company purchased direct raw material USD50,000, and direct labor cost USD21,000.
Raw material opening 35,500
Raw material closing 12,900
Work in process opening 8,000
Work in proses closing 5,050
Finished goods Opening 7,075
Finished good Closing 6,475
Indirect Material 9,500
Indirect labor 7,450
Selling and administrative Expenses 3,370
Depreciation 1200
Utilities 1,100
Others 800
Prepare Cost of goods sold schedule for the company.
Op RM 35500
+ Purchase of RM 50000
- cl RM 12900
= RM consumed 72600
Op WIP 8000
+ RM consumed 72600
+ Direct labour cost 21000
- Cl WIP 5050
= cost of production 96550
Op FP 7075
+ cost of production 96550
+ ind materials 9500
+ ind labour 7450
- cl FP 6475
= COGS 114100
COGS 114100
+ selling and adm expense 3370
= cost of sales 117470
This is as per best of the information available. Assuming Indirect mat and labour to be a part of COGS.
Depreciation, utilities and others are taken as Indirect expenses of business so not a part of COGS and COS.
Hope it helps.
@@camanishmahajan hi sir, may I know what is OP?
Op is opening, cl is closing
Hi sir. Can I have your WhatsApp number. I need more guidance. Pls...
@@camanishmahajan hi sir, after I checked with my friends, they told me "Do not include selling & administrative expenses into your manufacturing overhead ya.." so they get answer which is 117200
Thank you very much sir ❤❤❤❤
Thanks for the appreciation sanat.
Keep learning 👍
Very nice explanation. My doubts on this calculation part is absolutely clear now.
Gr8 to hear that.
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I'm impressed 🙋
Thanks parul for the appreciation. Keep learning keep growing.👍
thank you sir. You made it very clear to me. Please correct me if I'm wrong., "The electricity, wages, rent of a factory is also a direct expense and that adds to the COGS." Is that right sir?
Yes it is right.
Sir, no words to thank u, although i have been preparing for competative xzams... sir plz 1 request it there, kindly bring a lec on BRS
Ur welcome dear. Will surely be making the videos on brs and other topics. Stay tuned. Good luck👍
Too good sir thnq so much😊
Ur welcome. Stay tuned and keep learning with us.👍
Net sale=sale on cash+sale on credit-sale return
Thank u sir your explain is osm 👍🙏
Thank you for the appreciation. Keep learning with us👍
Dada can you example to multiple products & multiple foren products. Like the spare parts business.
The concept of COGS will remain same for all types of finished goods meant for resale.
You can apply the formula for all types of products separately to calculate COGS for each type of product and then add all to get total combined COGS.
@@camanishmahajan my difficulties is that my products is spare parts. Due to dollar fexactuation cost price is changes most of. I cant fix the sale price, we also loss. Which method can apply for the fixing the sale price.
Net profit=gross profit-indirect expenses
Net purchase = without taxes or Purchase - Purchase Returns?
Net purchases = gross purchase (-) purchase returns
Thanks
Keep learning keep growing 👍
Very underrated channel
Nice sir
Thanks dear.
Keep learning 👍
good explanation sir
Thank you and keep learning👍
Net sales-COGS= GROSS PROFIT
Kindly request sir, please makes video of balance sheet and p/L account .
Yes Asim. All the videos with relevant topics are being uploaded one by one. Will surely do it. Keep learning 👍
Gross profit=net sales-COGS
Keep it up
Good
Thank you 💖💖 sir
Ur welcome. Keep learning👍
Wonderful
Thanks for the appreciation Ashish. 👍
Sir G minus Closing stock Q karte hai samjhe nhi aaya kiyo ki woh to hamre pass already hai or purchase ki to woh us closing stock mai plus ➕ kiyo nhi hota hai please reply today🙏🙏🙏
Coz we are finding the value of only those goods which are sold. COGS is the cost of only those goods which have been sold. Therefore closing stock which is unsold is reduced from the total goods available for sale.
@@camanishmahajan1/4/2021 To 31/3/2022 Tak jitna bhee goods sales kiya hai woh COGS or Jo
31March ko bacha hai woh closing right es liye closing ko Minus➖ karte hai correct✅ reply 🙏
Correct 👍
@@camanishmahajan Thanx for suggestion 👍
sir please teach FINAL ACCOUNTS for CLASS 11
Yes Anish. Will be teaching all concepts. Videos will come in the order of accounting process. Stay tuned in. Keep learning the basics first. 👍
@@camanishmahajan Thanks sir
Gross profit vs ebit?
Which book is it???
All these are self written books and notes provided to students. Available with recorded lectures on our mobile app on playstore. Concepts Commerce Academy
@@camanishmahajan sir am from engineering background currently pursuing investment banking course and i want understand the basics, i was following your youtube videos and they are very helpful especially this one COGS. can you plz helpwhich books should i refer. cz the notes that you have shown in video is very good and to the point..
Thanks for the appreciation. You can buy T.S grewal, Juneja chawla, Sandeep garg or dk goyal.
All these are good books. I have used all these books myself and for teaching purposes.
Thankyou sir 👍
Ultra legend pro Max watching 1 hour before exam.😂😂😂😂
Good luck👍
Indirect income kyaa hai?
Any income earned other than sales.
Like interest received, commission received, rent received, discount received etc.
Is
Gross profit=EBIT=GROSS INCOME
Gp is only a trading margin. Whereas Ebit is the net profit after all expenses but before interest expense and tax. So GP is essentially after direct expenses but before Indirect expenses. But Ebit is afyer all direct and Indirect expenses except interest.
Net sales= Revenue=amount came after selling of finished goods
Cash flow ratio
why dont you put the title in your language ???
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CAGR
Tamil or english pl
Sir contact number mil jayega
Thanks🙏
You’re welcome 😊
Thank you sir
Ur welcome Sanjeev. Keep learning👍
Thanks sir
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thank you sir
Thank you sir
Keep learning and keep growing 👍