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Cost of Goods Manufactured (COGM)
Once all the individual parts are calculated and used to figure out the total cost of goods manufactured for the year, this COGM value is then transferred to a final inventory account called the Finished Goods Inventory account, and used to calculate Cost of Goods Sold Accounting Our Accounting guides and resources are selfstudy guides to learn accounting and finance at your own pace.
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· Gain on sale. Debit cash for the amount received, debit all accumulated depreciation, credit the fixed asset, and credit the gain on sale of asset account. A proper fixed asset disposal is of some importance from the perspective of maintaining a clean balance sheet, so that the recorded balances of fixed assets and accumulated depreciation properly reflect the assets actually owned by a business.
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