Cost of Goods Sold

Cost of goods sold (COGS) denotes the carrying value of goods and raw materials sold to customers during specific period.

Calculator of Cost of Goods Sold

Formula of Cost of Goods Sold

Cost of goods sold = Beginning inventory + Purchases – Ending inventory

Example of Cost of Goods Sold

Beginning inventory of a company was $16000 and the company purchased new inventory for the cost of $5000. Ending inventory of the company was $10000.Calculate the cost of goods sold in a year.

Given:

Beginning inventory = $16000
Purchases = $5000
Ending inventory = $10000

To Find Cost of goods sold

Solution:

COGS = Beginning inventory + Purchases – Ending inventory
= 16000 + 5000 – 10000
= 21000 – 10000
= $11000