What Does COGS Stand For?  

CGS  Stands for Cost of Goods Sold.
COGS.image

 

 What is (the COGS) Cost of Goods Sold?

COGS acts as an Acronym for the Cost of Goods Sold. The Cost of Goods sold is the value of the Goods that have been sold out. This cost is calculated by the following formula.


COGS Formula:

                     COGS =  Opening Inv + Purchases - Closing Inventory

How find the Cost of goods sold?

we can calculate the value of COGS by solving the following Question

Example:

 If you have sales of 50,000 and the opening inventory is 15000. The value of the Purchase of goods is 90000 and the closing inventory is 2000 what is the value of the Cost of Goods sold.

COGS Calculation:

Opening Inventory                          15000

Purchases                                         9000

Cost of Goods available for sale    24,000

Less: Closing Inventory                 (2000)

Cost of Goods Sold                        22,000