Cost of Goods Sold - What is cost of goods sold equal to?

Q: What is cost of goods sold equal to?

The cost of goods available for sale equals the beginning value of inventory plus the cost of goods purchased. The cost of goods sold equals the cost of goods available for sale less the ending value of inventory.

Answer

In the beginning, the value of inventory is equal to the cost of items acquired plus the cost of products offered for sale. A company's COGS may be calculated by subtracting the final value of its inventory from the cost of items offered for sale.

Cost of Goods Sold - What is cost of goods sold equal to?

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