Cost of Sales Formula?

by Fahad
(KSA)

What is the cost of sales formula?

Comments for Cost of Sales Formula?

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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.

Inventory
by: Anonymous

Hi I want to ask about the following:

Inventory(1 March20.2) - 170000
sales-550000
purchases -350000
sales returns -1200
purchases returns - 2000
closing inventory -160500

What is the cost of sales figure?


answer
by: waqas

CGS = opening inv + purchases - closing inv

Cost of sales formula
by: Patrick

Purchases X
Add closing stock(inventory) X

X
Less opening inventory(stock) (X)

Cost of sales X

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