Cost of Goods Sold Calculator

✖Beginning Inventory refers to the value of goods and materials held by a business at the start of a specific accounting period.ⓘ Beginning Inventory [BI]			+10% -10%
✖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.ⓘ Purchases During the Period [PDP]			+10% -10%
✖Ending Inventory is the value of goods and materials held by a business at the conclusion of a specific accounting period.ⓘ Ending Inventory [EI]			+10% -10%

✖Cost of Goods Sold represents the direct expenses incurred in producing or acquiring goods that have been sold during a specific period.ⓘ Cost of Goods Sold [COGS]

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Formula

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Cost of Goods Sold

Formula

COGS = BI + PDP - EI

Example

17355 = 13200 + 6800 - 2645

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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 00.004 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!

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IGNOU (IGNOU), India

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< 5 Important Formulas of Cost Accounting Calculators

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Go Cost of Goods Sold = Beginning Inventory+Purchases During the Period-Ending Inventory

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Go Customer Acquisition Cost = Cost of Sales and Marketing/Number of New Customers Acquired

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Go Backorder Rate = (Number of Undeliverable Orders/Total Number of Orders)

Conversion Cost

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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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