Free Cost of Goods Sold Calculator

How do I calculate the cost of goods sold?  

The calculation for cost of goods sold is starting inventory + purchases − ending inventory = cost of goods sold.  For example, at the beginning of each month you should calculate your starting inventory amount and at the end of the month calculate your ending inventory amount.  Add your inventory purchases for the month to your starting inventory and subtract your ending inventory amount to determine your cost of goods sold (COGS).

What is COGS?  

COGS stands for Cost of Goods Sold.

What should be included in COGS?

COGS should include the direct material expenses and direct labor expenses to produce your product or service.

What is an example of the cost of goods sold?  

An example of cost of goods sold would be the cost of food and ingredients at a restaurant as well as the labor cost for the cooks preparing the food.

Which expenses are included in the cost of goods sold?  

All direct materials and direct labor costs involved in producing your product or service should be included in your cost of goods sold.