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
Why is freight in or freight out not included in this formula? Should it be? Some sources on the internet say yes & others say no. What is your opinion?
Great tool!
Does this work the same way for accrual tax returns? I have a CPA telling me I should no be deducting ending inventory or that I should be including the increase in inventory as part of the purchases. I can not find anything that says that and he wants me to amend three years of tax returns.
How to account for free materials received and free utilities for which am not paying due to government subsidy
Good formatting 👍🏿
To simple.. let’s see a real heavy duty COGSC