Question

how do I find the current manufacturing cost

Answer 1

Manufacturing Cost is the aggregate amount of cost inccured by the business to produce goods in the current year (reporting year). It also means that the total manufacturing cost is equal to the cost of goods sold.

Manufacturing cost = Direct Material +Direct Overheads + Direct labour.

Direct material = Opening stock + Purchases - Closing Stock

Direct overheads = Its aggregate cost of all expenses incurred in a factory during that period.(Eg. Rent of the factory, depriciation.) Cost like salary of office employees, advertising expense are not part of Direct overheads.

Direct Labour= Compile cost of all direct manufacturing labours. i.e. Wages to the labourers in the factory.