Cost of Sales Formula?

by Fahad

What is the cost of sales formula?

Comments for Cost of Sales Formula?

Click here to add your own comments

Journal Exercise
by: Mthandeni

Hi please help by journalising the following:

1. The business thus went ahead in obtaining a loan of R150,000. Interest of 11% for the year is still owing at year end.

2. A business purchased stock to the value of R12,000, R10,000 of which was sold. The business sold this stock for R25,000. The business uses the perpetual stock system. The cost of sales entry was not recorded in the business records in the month the stock was sold.

3. Stock purchased for R30,000 was recorded against the`purchases' account, and valued at R25,000 in closing stock at year-end. The difference of R5,000 was taken to the 'stock written down' account. However, upon discussion between managers it was agreed that the treatment of this valuation was not the same as the method of valuation used the prior year, and the difference had to be reversed.

Cost of Sales Formula
by: Anonymous

Cost of Sales = Opening Inventory + Purchases -Closing Inventory

Cost of Sales and Gross Profit
by: Anonymous

Please help with calculating cost of sales and gross profit:

Inventory (1 March 2013) - 100,000
sales - 150,000
purchases - 80,000
sales returns - 1,200
purchases returns - 2000,
freight charges on purchases - 650
freight charges on sales - 1700
settlement discount granted - 350
closing inventory - 400,000

What is the cost of sales figure and gross profit?

Cost of Sales and Gross Profit Exercise
by: Anonymous

I'm confused by this please help:

Inventory (1 march 2013) 150 000
sales 100 000
purchases 80 000
sales returns 1500
purchases returns 2000
Freight charges on purchases 650
Freight charges on sales 1700
Settlement discount granted 350

Please help, which should I consider when calculating cost of sales and gross profit.

by: Anonymous

Hi I want to ask about the following:

Inventory(1 March20.2) - 170000
purchases -350000
sales returns -1200
purchases returns - 2000
closing inventory -160500

What is the cost of sales figure?

by: waqas

CGS = opening inv + purchases - closing inv

Cost of sales formula
by: Patrick

Purchases X
Add closing stock(inventory) X

Less opening inventory(stock) (X)

Cost of sales X

Click here to add your own comments

Return to Ask a Question About This Lesson!.

Advertise on

Search this website:

All the lessons on this site and much, much more...

Accounting Basics: Complete Guide

Available Now On

Get Your Degree!

Find schools and get information on the program that’s right for you.

Powered by

Subscribe to
The Student Accountant newsletter

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you The Student Accountant.