How to CALCULATE COST OF GOODS SOLD // Cost of Sales
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- Опубліковано 10 лют 2023
- How to calculate the cost of goods sold, or the cost of sales for the Income Statement.
Cost of Goods sold/ Cost of sales are the price the company paid to get the products or services before selling them.
Thank you, i have subscribed because you have explained it so well that I already feel like an expert. ❤❤
You saved me I spent 1 hour looking for a video to explain this ,thank you
You're welcome!
What did u want to be in the future
A teacher like my mom
As someone that never did accounting this was really helpful an easy to understand
Im so happy that it was helpful for you!
Thank you!
easy to understand
thank you
ty !!!
As i know, COGS & cost of sales aren't the same! COGS is the cost of sum of direct material + direct labor+ direct overhead... while cost of sales are both direct & indirect costs which aren't directly related to production or service deliver to the customer.
for example in hospitals, COGS are cost of direct materials(medical consumables & medication) + cost of doctors fees & nurses payroll + cost of overhead like clinical sites energy, water...etc. can you please explain that.
What if the questions doesn’t have purchases
Hi do more examples in this video
2:07 where do you get the 69000
why is your nine like a seven , that confused me
I've understand
I'm glad you understand!
Can you please do an example with purchase returns and sale returns
Just posted a video on this, hope it helps
Hi. Please I’m a bit confused
Hi there where is the next video for net profit
I will upload it tomorrow, just uploaded one on the operating income.
Tutorial is uploaded Landiwe, hope it helps
Is it not the two are different? Cost of goods sold are those incurred from supplier to your warehouse and cost of sales are those incurred when the product goes from your warehouse to your customer.
Yes they have a slightly different meaning, but fundamentally they represent the same thing and can both be used.
The problem occurs when the cost of goods sold changes for the same product and quantity which happens when the supplier change or raise prices. I solved this by treating the new batch of the same product as a separate inventory with its own unique SKU or ID. The ID or SKU represents a bucket where the product belongs to. I can just FIFO from those bucket when taking inventory out for selling. I could have used weighted average but I want things to be simple.
Hlo