How to CALCULATE COST OF GOODS SOLD // Cost of Sales

[@tamianyahoda2859]

You saved me I spent 1 hour looking for a video to explain this ,thank you

[@missaccounting]

You're welcome!

[@NJATEHJALLOW]

What did u want to be in the future

[@missaccounting]

A teacher like my mom

[@withlovenandi]

As someone that never did accounting this was really helpful an easy to understand

[@missaccounting]

Im so happy that it was helpful for you!

[@ashabid2000]

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.

[@AsandaMalandiswe]

why is your nine like a seven , that confused me

[@gud-onevantonder6693]

easy to understand

[@idk6386]

Thank you!

[@yixyaxo]

ty !!!

[@imanfatihah8098]

What if the questions doesn’t have purchases

[@roialnet]

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.

[@missaccounting]

Yes they have a slightly different meaning, but fundamentally they represent the same thing and can both be used.

[@roialnet]

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.

[@mudassar84]

thank you

[@NdabenhleSiboniso]

Can you please do an example with purchase returns and sale returns

[@missaccounting]

Just posted a video on this, hope it helps

[@InnocentHornbill-jl1so]

2:07 where do you get the 69000

[@DaisyRauweu]

Hi do more examples in this video

[@TheJoshuasackeyy]

Hi. Please I’m a bit confused

[@alexchiyosha6404]

I've understand

[@missaccounting]

I'm glad you understand!

[@landiwelingela9469]

Hi there where is the next video for net profit

[@missaccounting]

I will upload it tomorrow, just uploaded one on the operating income.

[@missaccounting]

Tutorial is uploaded Landiwe, hope it helps

[@BurtukanTasfaye]

Answer

[@shahinparveen2371]

Hlo