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.
Beginning inventory = $16000
Purchases = $5000
Ending inventory = $10000
To Find Cost of goods sold
COGS = Beginning inventory + Purchases – Ending inventory
= 16000 + 5000 – 10000
= 21000 – 10000