Cost of Goods Sold (COGS) Calculator
Calculate Cost of Goods Sold (COGS) for manufacturers based on finished goods inventory shifts and Cost of Goods Manufactured (COGM).
Finished Goods & Cost of Goods Sold (COGS) Schedule
Manufacturing COGS Formula
COGS = Beginning Finished Goods Inventory + Cost of Goods Manufactured (COGM) - Ending Finished Goods Inventory- Goods Available for Sale = Beginning Finished Goods + Cost of Goods Manufactured.
- COGS: Cost transferred to the income statement when goods are sold to customers.
- Ending Finished Goods: Unsold inventory remaining on the balance sheet at period end.
Step-by-Step Worked Example
Calculation Steps:
- Goods Available for Sale = $25,000 + $115,000 = $140,000
- Cost of Goods Sold (COGS) = $140,000 - $20,000 = $120,000
- Gross Profit Margin ($) = $200,000 - $120,000 = $80,000
- Gross Profit Margin (%) = ($80,000 / $200,000) × 100 = 40.0%
How to Use This Calculator
- 1Enter beginning finished goods inventory balance.
- 2Input Cost of Goods Manufactured (COGM) for the period.
- 3Enter ending finished goods inventory balance.
- 4Optionally specify total sales revenue to calculate gross profit dollars and margin %.
Assumptions & Limitations
- Assumes finished goods inventory is valued at manufacturing cost.
- Excludes non-manufacturing operating expenses.
Frequently Asked Questions
How does manufacturing COGS differ from retail COGS?
Retailers calculate COGS by adding merchandise purchases to beginning inventory. Manufacturers must first calculate Cost of Goods Manufactured (materials + labor + factory overhead + WIP changes) before determining COGS.
Related Cost Calculators
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Manufacturing Profit Margin Calculator
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Cost of Goods Manufactured (COGM) Calculator
Calculate Cost of Goods Manufactured (COGM) schedules under GAAP absorption accounting, tracking raw materials, direct labor, and WIP inventory changes.