Cost of Goods Sold and Cost of Goods Manufactured

Cost of goods sold is a straightforward computation for a retailer because retailers have only a single class of inventory.
 The calculation is more complex for a manufacturer, because manufacturers have three distinct Classes of inventory.

Cost of goods sold for a retailer:

Beginning Inventory		$ XXX,XXX
Add: Purchases	$ XXX,XXX
Less: Returns and discounts	($ XX,XXX)
Net purchases	$ XXX,XXX
Add: Freight-in	$ XX,XXX	$ XXX,XXX
Goods available for sale		$ XXX,XXX
Less: Ending inventory		($ XX,XXX)
Costs of goods sold		$ XXX,XXX

Cost of goods sold for a manufacturer:

Beginning raw materials inventory		$ X,XXX,XXX
Add: Purchases	$ XXX,XXX
Less: Returns	($ XX,XXX)
Net purchases	$ XXX,XXX
Add: Freight-in	$ XX,XXX	$ X,XXX,XXX
Raw materials available for use		$ X,XXX,XXX
Less: Ending raw materials inventory		($ XXX,XXX)
Direct materials used in production			$ X,XXX,XXX
Direct labor costs			$ X,XXX,XXX
Manufacturing overhead costs			$ XXX,XXX
Total manufacturing costs for the period			$ X,XXX,XXX
Add: Beginning work-in-process inventory			$ XXX,XXX
Less: Ending work-ln-process inventory			($ XXX,XXX)
Costa or goods manufactured			$ X,XXX,XXX
Add: Beginning finished goods Inventory			$ XXX,XXX
Goods available for sale			$ X,XXX,XXX
Less: Ending finished goods inventory			($ XXX,XXX)
Costs of goods sold			$ X,XXX,XXX