Cost of Goods Sold

Cost of goods sold, abbreviated as COGS, is the compared inventory at the start of a given period to the end of a given period.

 

cost of goods sold Formula

\(\large{ COGS = IB +  P -  IE  }\)

Symbol

\(\large{ COGS }\) = cost of goods sold

\(\large{ IB }\) = beginning inventory

\(\large{ IE }\) = ending inventory

\(\large{ P }\) = purchases during the year