This is a accounting 2 manufacturing business model I went over today in my first class I need it better written out similarly to this with each description given here's the information about each of the parts### Key Components in the Model1. **DM (Direct Materials)** - Costs of raw materials used in the production process.2. **DL (Direct Labor)** - Costs of labor directly involved in the manufacturing process.3. **FOH (Factory Overhead)** - Indirect costs associated with manufacturing, such as utilities, maintenance, and depreciation.4. **EN (Ending Inventory)** - The value of goods available for sale at the end of the accounting period.5. **RM (Raw Materials)** - The inventory of raw materials before they are used in production.6. **WIP (Work In Process)** - Products that are in the process of being manufactured but are not yet complete.7. **FG (Finished Goods)** - Completed products that are ready for sale.8. **COGM (Cost of Goods Manufactured)** - The total cost of manufacturing goods that are completed during the period.9. **COGS (Cost of Goods Sold)** - The cost of goods that have been sold during the period.### The Entire Process#### 1. Raw Materials (RM) to Direct Materials (DM)- **Raw Materials Inventory (RM)** - Begin with the initial inventory of raw materials. - Add any additional purchases of raw materials during the period. - Subtract the ending inventory of raw materials to find the direct materials used in production.#### 2. Direct Materials (DM), Direct Labor (DL), and Factory Overhead (FOH)- **Direct Materials (DM)** - These materials are moved into production.- **Direct Labor (DL)** - The labor costs directly associated with manufacturing.- **Factory Overhead (FOH)** - Indirect costs that support the production process.#### 3. Work In Process (WIP)- **Work In Process (WIP)** - Beginning WIP inventory. - Add the total manufacturing costs (DM + DL + FOH). - Subtract the ending WIP inventory to determine the cost of goods manufactured.#### 4. Finished Goods (FG)- **Finished Goods Inventory (FG)** - Beginning inventory of finished goods. - Add the cost of goods manufactured. - Subtract the ending inventory of finished goods to determine the cost of goods sold.#### 5. Cost of Goods Sold (COGS)- **Cost of Goods Sold (COGS)** - This is calculated by adding the beginning inventory of finished goods and the cost of goods manufactured, then subtracting the ending inventory of finished goods.### Flow of Costs1. **Raw Materials to Direct Materials:** - Calculate the direct materials used by adjusting for beginning and ending inventory.2. **Direct Costs to WIP:** - Add direct materials, direct labor, and factory overhead to get the total manufacturing costs.3. **Work in Process to Finished Goods:** - Adjust WIP inventory for beginning and ending balances to find the cost of goods manufactured.4. **Finished Goods to COGS:** - Adjust the finished goods inventory for beginning and ending balances to determine the cost of goods sold.### Final Notes- The model helps track the flow of manufacturing costs through various stages of production, from raw materials to finished goods.- Properly managing inventory and understanding these cost flows are crucial for accurate financial reporting and cost control in manufacturing.