Which component is NOT included in the total calculations for COGM?

The determination of Cost of Goods Manufactured (COGM) is a key concept in managerial accounting, focusing on the total production costs incurred during a specific period. To calculate COGM, the components typically considered are direct materials used, direct labor costs, and applied overhead.

Ending Work in Process (WIP) is not included in the total calculations for COGM because COGM reflects the costs associated with products that have been completed during the accounting period. Ending WIP represents inventory that is still in production and has not yet been finished or transferred to the finished goods inventory. Therefore, it does not contribute to the costs of goods that have been manufactured and ready for sale.

In summary, while COGM includes direct materials, direct labor, and applied overhead, it excludes the ending WIP because it does not relate to completed production, which is crucial in determining the full costs of manufacturing products that have ultimately been sold.