Understanding COGS Calculations
This calculator computes the Cost of Goods Sold (COGS) based on beginning finished goods inventory, cost of goods manufactured (COGM), and ending finished goods inventory, with support for multiple currencies.
COGS represents the cost of goods sold during a period, critical for calculating gross profit. The formula is Beginning Inventory + COGM - Ending Inventory.
Example COGS Calculations
| Beginning Inventory | COGM | Ending Inventory | COGS |
|---|---|---|---|
| $5,000 | $18,500 | $4,000 | $19,500 |
| $10,000 | $87,000 | $8,000 | $89,000 |
| $20,000 | $175,000 | $15,000 | $180,000 |
How to Use the COGS Calculator
- Select the currency for cost inputs.
- Enter the beginning finished goods inventory and cost of goods manufactured (COGM).
- Enter the ending finished goods inventory value.
- Click "Calculate COGS" to view the cost of goods sold.
COGS Components Breakdown
Breakdown of beginning inventory, COGM, ending inventory, and COGS.
Frequently Asked Questions
What is Cost of Goods Sold (COGS)?
COGS is the cost of producing goods sold during a period, including beginning inventory, COGM, and adjusted for ending inventory, used to calculate gross profit.
Why is COGS important?
COGS is essential for financial reporting, determining gross profit, and managing inventory costs, impacting pricing and profitability analysis.