Cost of Sales Calculator
Cost of Sales Calculator
Component | Description |
---|---|
Beginning Inventory | The value of inventory at the beginning of the period. |
Purchases | The total value of goods purchased during the period. |
Ending Inventory | The value of inventory at the end of the period. |
Cost of Sales | The cost of goods sold during the period. |
Formula | Cost of Sales = Beginning Inventory + Purchases – Ending Inventory |
Purpose | Used to measure the direct costs associated with the production of goods sold by a company. |