## Cost of Goods Sold Solution

STEP 0: Pre-Calculation Summary
Formula Used
Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory
COGS = BI+PDP-EI
This formula uses 4 Variables
Variables Used
Cost of Goods Sold - Cost of Goods Sold represents the direct expenses incurred in producing or acquiring goods that have been sold during a specific period.
Beginning Inventory - Beginning Inventory refers to the value of goods and materials held by a business at the start of a specific accounting period.
Purchases During the Period - Purchases During the Period refers to the total cost of acquiring goods or materials by a business within a specific timeframe, typically a fiscal or accounting period.
Ending Inventory - Ending Inventory is the value of goods and materials held by a business at the conclusion of a specific accounting period.
STEP 1: Convert Input(s) to Base Unit
Beginning Inventory: 13200 --> No Conversion Required
Purchases During the Period: 6800 --> No Conversion Required
Ending Inventory: 2645 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
COGS = BI+PDP-EI --> 13200+6800-2645
Evaluating ... ...
COGS = 17355
STEP 3: Convert Result to Output's Unit
17355 --> No Conversion Required
FINAL ANSWER
17355 <-- Cost of Goods Sold
(Calculation completed in 00.005 seconds)
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## Credits

Created by Keerthika Bathula
Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad
Keerthika Bathula has created this Calculator and 50+ more calculators!
Verified by Aashna
IGNOU (IGNOU), India
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## < 25 Cost Accounting Calculators

Material Cost Variance
Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price)
Labour Cost Variance
Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)
Revised Standard Quantity
Revised Standard Quantity = (Standard Quantity of each Material/Total Standard Quantity)*Total Actual Quantity
Learning Curve
Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)
Labour Efficiency Variance
Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance
Time to Receive
Time to Receive = Time for Stock Validation+Time to Add Stock to Records+Time to Prep Stock for Storage
Labour Rate Variance
Labour Rate Variance = Actual Time*(Standard Rate-Actual Rate)*Variance
Cycle Time
Cycle Time = Process Time+Inspection Time+Move Time+Queue Time
Revised Standard Hours of Labours
Revised Standard Hours of Labours = (Actual Mix/Standard Mix)*(Standard Hours of Labour)
Material Yield Variance
Material Yield Variance = (Actual Unit Usage-Standard Unit Usage)*Standard Cost per Unit
Overall Equipment Effectiveness
Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time
Avoided Cost
Avoided Costs = Assumed Repair Cost+Production Losses-Preventative Maintenance Cost
Material Usage Variance
Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)
Labour Mix Variance
Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time)
Material Price Variance
Material Price Variance = Actual Quantity*(Standard Price-Actual Price)
Material Quantity
Material Quantity = Standard Price*(Standard Quantity-Actual Quantity)
Customer Acquisition Cost
Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired
Total Addressable Market
Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients
First Pass Yield
First Pass Yield = Number of Good Products Finished/Number of Production Orders Started
Average Days Delinquent
Average Days Delinquent = Days Sales Outstanding-Best Possible Days Sales Outstanding
Backorder Rate
Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)
Monthly Recurring Revenue
Monthly Recurring Revenue = Number of Customers*Average Billed Amount
Sell -Through Rate
Sell Through Rate = Number of Units Sold/Number of Units Received
Takt Time
Takt Time = Production Available Time/Customer Demand
On-Time Delivery
On-Time Delivery = On Time Units/Total Units

## < 16 Important Formulas of Cost Accounting Calculators

Labour Cost Variance
Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)
Learning Curve
Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)
Labour Efficiency Variance
Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance
Overall Equipment Effectiveness
Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time
Cost of Goods Sold
Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory
Material Usage Variance
Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)
Noria Effect
Noria Effect = (New Hires Salary Cost-Leavers Salary Cost)/Previous Salary Cost
Customer Acquisition Cost
Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired
Total Addressable Market
Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients
Backorder Rate
Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)
Conversion Cost
Conversion Cost = Direct Labour Cost+Manufacturing Overhead Cost
Production Cost
Production Cost = Total Fixed Costs+Total Variable Costs
Prime Cost
Prime Cost = Direct Materials Cost+Direct Labour Cost
Takt Time
Takt Time = Production Available Time/Customer Demand
On-Time Delivery
On-Time Delivery = On Time Units/Total Units
Unit Cost
Unit Cost = Total Cost/Total Units Produced

## Cost of Goods Sold Formula

Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory
COGS = BI+PDP-EI

## What is Cost of Goods Sold ?

Cost of Goods Sold (COGS) is a crucial accounting metric that represents the direct expenses a business incurs in producing or acquiring the goods it sells during a particular period. It includes expenses directly associated with the production process, such as raw materials, labor wages for workers involved in production, and factory overhead costs like utilities and depreciation of manufacturing equipment. COGS excludes indirect costs like marketing, distribution, and administrative expenses, focusing solely on the expenses directly tied to the creation of goods. By calculating COGS accurately, businesses can determine their gross profit margin, which is essential for assessing profitability and making informed decisions about pricing strategies, production efficiency, and inventory management. COGS is a fundamental component in the income statement and plays a key role in determining a company's overall financial performance.

## How to Calculate Cost of Goods Sold?

Cost of Goods Sold calculator uses Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory to calculate the Cost of Goods Sold, The Cost of Goods Sold is the total cost incurred by a business in producing or acquiring the goods that were sold during a specific period. Cost of Goods Sold is denoted by COGS symbol.

How to calculate Cost of Goods Sold using this online calculator? To use this online calculator for Cost of Goods Sold, enter Beginning Inventory (BI), Purchases During the Period (PDP) & Ending Inventory (EI) and hit the calculate button. Here is how the Cost of Goods Sold calculation can be explained with given input values -> 17355 = 13200+6800-2645.

### FAQ

What is Cost of Goods Sold?
The Cost of Goods Sold is the total cost incurred by a business in producing or acquiring the goods that were sold during a specific period and is represented as COGS = BI+PDP-EI or Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory. Beginning Inventory refers to the value of goods and materials held by a business at the start of a specific accounting period, Purchases During the Period refers to the total cost of acquiring goods or materials by a business within a specific timeframe, typically a fiscal or accounting period & Ending Inventory is the value of goods and materials held by a business at the conclusion of a specific accounting period.
How to calculate Cost of Goods Sold?
The Cost of Goods Sold is the total cost incurred by a business in producing or acquiring the goods that were sold during a specific period is calculated using Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory. To calculate Cost of Goods Sold, you need Beginning Inventory (BI), Purchases During the Period (PDP) & Ending Inventory (EI). With our tool, you need to enter the respective value for Beginning Inventory, Purchases During the Period & Ending Inventory and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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