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!

Verified by Aashna

IGNOU (IGNOU), India

Aashna has verified this Calculator and 25+ more calculators!

< 25 Cost Accounting Calculators

Material Cost Variance

Go Material Cost Variance = (Standard Quality for Actual Output*Standard Price)-(Actual Quantity*Actual Price)

Labour Cost Variance

Go Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)

Revised Standard Quantity

Go Revised Standard Quantity = (Standard Quantity of each Material/Total Standard Quantity)*Total Actual Quantity

Learning Curve

Go Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)

Labour Efficiency Variance

Go Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance

Time to Receive

Go Time to Receive = Time for Stock Validation+Time to Add Stock to Records+Time to Prep Stock for Storage

Labour Rate Variance

Go Labour Rate Variance = Actual Time*(Standard Rate-Actual Rate)*Variance

Cycle Time

Go Cycle Time = Process Time+Inspection Time+Move Time+Queue Time

Revised Standard Hours of Labours

Go Revised Standard Hours of Labours = (Actual Mix/Standard Mix)*(Standard Hours of Labour)

Material Yield Variance

Go Material Yield Variance = (Actual Unit Usage-Standard Unit Usage)*Standard Cost per Unit

Overall Equipment Effectiveness

Go Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time

Avoided Cost

Go Avoided Costs = Assumed Repair Cost+Production Losses-Preventative Maintenance Cost

Material Usage Variance

Go Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)

Labour Mix Variance

Go Labour Mix Variance = Standard Rate*(Reversed Standard Rate-Actual Time)

Material Price Variance

Go Material Price Variance = Actual Quantity*(Standard Price-Actual Price)

Material Quantity

Go Material Quantity = Standard Price*(Standard Quantity-Actual Quantity)

Customer Acquisition Cost

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

Total Addressable Market

Go Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients

First Pass Yield

Go First Pass Yield = Number of Good Products Finished/Number of Production Orders Started

Average Days Delinquent

Go Average Days Delinquent = Days Sales Outstanding-Best Possible Days Sales Outstanding

Backorder Rate

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

Monthly Recurring Revenue

Go Monthly Recurring Revenue = Number of Customers*Average Billed Amount

Sell -Through Rate

Go Sell Through Rate = Number of Units Sold/Number of Units Received

Takt Time

Go Takt Time = Production Available Time/Customer Demand

On-Time Delivery

Go On-Time Delivery = On Time Units/Total Units

< 16 Important Formulas of Cost Accounting Calculators

Labour Cost Variance

Go Labour Cost Variance = (Standard Hours for Actual Output*Standard Rate)-(Actual Hours*Actual Rate)

Learning Curve

Go Learning Curve = (Time Taken to Produce Initial Quantity*Cumulative Number of Batches)^(-Learning Coefficient)

Labour Efficiency Variance

Go Labour Efficiency Variance = Standard Rate*(Standard Time-Actual Time)*Variance

Overall Equipment Effectiveness

Go Overall Equipment Effectiveness = Good Count*Ideal Cycle Time/Planned Production Time

Cost of Goods Sold

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

Material Usage Variance

Go Material Usage Variance = Standard Price*(Actual Quantity Units-Standard Quantity)

Noria Effect

Go Noria Effect = (New Hires Salary Cost-Leavers Salary Cost)/Previous Salary Cost

Customer Acquisition Cost

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

Total Addressable Market

Go Total Addressable Market = Annual Contract Value per Client*Number of Potential Clients

Backorder Rate

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

Conversion Cost

Go Conversion Cost = Direct Labour Cost+Manufacturing Overhead Cost

Production Cost

Go Production Cost = Total Fixed Costs+Total Variable Costs

Prime Cost

Go Prime Cost = Direct Materials Cost+Direct Labour Cost

Takt Time

Go Takt Time = Production Available Time/Customer Demand

On-Time Delivery

Go On-Time Delivery = On Time Units/Total Units

Unit Cost

Go 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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