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Topic: Cost of goods sold

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production, costs, and pricing

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	Cost of goods sold - Wikipedia, the free encyclopedia
		In accounting, the cost of goods sold (also, cost of sales or cost of revenue) describes the direct expenses incurred in producing a particular good for sale, including the actual cost of materials that comprise the good, and direct labor expense in putting the good in salable condition.
		The revenue from merchandise sold must be matched with the cost of goods sold.
		Cost of sales or cost of goods sold is the identification of the cost of those items sold in the most recent accounting period.
	en.wikipedia.org /wiki/Cost_of_goods_sold (363 words)

	Inventory Cost Flow Assumptions
		The total cost of goods sold plus the cost of the goods remaining in ending inventory for financial and tax purposes is equal to the actual cost of goods available.
		At the end of the accounting period, the number of units sold (left in inventory) is then multiplied by the average price per unit to determine cost of goods sold and ending inventory.
		Under LIFO the goods in inventory at the beginning of the period is assumed to remain in the ending inventory (perhaps for decades).
	www.csun.edu /~hfact004/inventory_cost_flow_assumptions.htm (666 words)

	Online Accounting Course \| Inventory and Cost of Goods Sold (1)
		Under the FIFO cost flow assumption, the first (oldest) costs are the first ones to leave inventory and become the cost of goods sold on the income statement.
		Under the LIFO cost flow assumption, the last (or recent) costs are the first ones to leave inventory and become the cost of goods sold on the income statement.
		This average cost is then applied to the units sold during the year as well as to the units in inventory at the end of the year.
	www.accountingcoach.com /online-accounting-course/12Xpg01.html (2022 words)

	Resources for Current Asset Categories: Inventory and Cost of Goods Sold (Site not responding. Last check: 2007-10-22)
		Cost of good sold and its balance sheet counterpart, inventory, are the subjects of this resources page.
		LCM shifts a portion of inventory cost to the period of the loss; later periods recognize a smaller amount of cost of goods sold.
		Cost of goods sold is much more complex for firms that manufacture goods because materials, labor and overhead are included in the cost of product.
	www.swcollege.com /accounting/students/ca_inv_reso.htm (2560 words)

	Review Questions for Current Assets: Inventory and Cost of Goods Sold (Site not responding. Last check: 2007-10-22)
		A. Cadmium's cost of goods sold is understated.
		Cost of goods sold under FIFO is not as useful as under LIFO for forecasting future cost of goods sold, and therefore income.
		Cost of goods sold under LIFO is more representative of future cost of goods sold than for any of the other cost flow assumptions.\')',''); G16.am('actn','stop','stop',''); G16.am('end'); G16.am('segm','Segment: average Feedback_',1,0); G16.am('cond','average Selected_','G16.e[\'elem\'].c[\'average\'].selected == true',0); G16.am('actn','Write To Popup','MM_writeToPopup(\'Incorrect.
	www.swcollege.com /accounting/students/ca_inv_rq.htm (1535 words)

	H&R Block \| Small Business Resources \| Resources \| Cost of Goods Sold (Site not responding. Last check: 2007-10-22)
		Cost of Goods Sold (often referred to as "COGS") represents your business's cost of inventory that was sold during the accounting period.
		For example, the cost of the computer is an asset, but it does not become an expense until the asset is sold, at which time it is matched with the revenue generated by the sale.
		The basic Cost of Goods Sold calculation is shown below and is similar to the calculation used in federal income tax returns.
	www.hrblock.com /sbr/resources/article_cogs.html (335 words)

	Restaurant Report - Running Your Business - Simplifying Cost of Goods Sold
		The Cost of Goods Sold calculation is used to calculate a Cost of Goods Sold percentage for a given accounting period, as shown below in Figure 1.
		The Cost of Goods Sold calculation is also most valuable when it is broken down by categories, i.e., food, liquor, bottle beer, draft beer and wine.
		Cost of Goods Sold is what is called a Controllable Expense, an expense that is in the day-to-day control of management.
	www.restaurantreport.com /Departments/biz_cogs_simplified.html (841 words)

	Cost Of Goods Sold Definition
		An income statement figure which reflects the cost obtaining raw materials and producing finished goods that are sold to consumers.
		Cost of Goods Sold = Beginning Merchandise Inventory + Net Purchases of Merchandise - Ending Merchandise Inventory.
		In standard accounting practices, gross margin can be calculated by subtracting the cost of goods sold from total sales.
	www.investorwords.com /1158/Cost_Of_Goods_Sold.html (175 words)

	Gross margin
		The cost of the goods that are sold is naturally that portion of inventory sold during the year.
		Cost of goods sold is very much affected by the unit pricing method a company uses for its inventory.
		Decreasing unit costs will be taken up once again in the analysis of strategies associated with automation and fixed costs as part of operating leverage analysis Chapter 10 Section D.
	www.peoi.org /Courses/Coursesen/finanal/ch/ch9c.html (2505 words)

	Computing Your Cost of Goods Sold
		You would also report the cost of labor on Line 37, including both direct labor costs for production workers, and indirect costs for other employees who perform a general factory function that is necessary for the manufacturing process.
		As materials are taken from storage and used in the manufacturing process, their costs are removed from (credited to) raw materials and added (debited) to the work in process account.
		When the goods are finished, their costs are transferred (credited) out of work in process and added (debited) to the finished goods inventory.
	taxguide.completetax.com /text/Q12_2330.asp (642 words)

	Business tax tip: Choices, consequences when valuing your inventory.
		The items in inventory at the end of the tax year are matched with the costs of items of the same type that were most recently purchased or produced.
		Since the first goods in would be the first goods sold, the resulting cost will be lower.
		Because the last goods in are the first goods out, the final cost of goods sold will be less.
	www.bankrate.com /brm/itax/Edit/tips/Biz_stories/19990909a.asp (751 words)

	Cost of Goods Sold (COGS) Reduction by 1%
		On the income statement of most discrete manufacturing firms, cost of goods sold, COGS, is typically in the range of 70-95% of revenue.
		According to Frank Azzolino, President and CEO of aPriori (http://www.apriori.com/), which produces cost management software, “Giving our customers accurate, predictive, real-time product cost estimates along with their understanding of the leveraged effect that reducing COGS has on net income (and the profit opportunity that this represents) is one of our primary value drivers.
		With cost management platform capabilities, predictive, forward looking cost estimates are available throughout the development through production delivery process, which improve accuracy and continually converge on the true economic cost of the product.
	www.automation.com /sitepages/pid2314.php (671 words)

	Online Accounting Course \| Inventory and Cost of Goods Sold (3)
		In addition to the six cost flow assumptions presented in Part 1 and Part 2, businesses have another option: expense to the cost of goods sold the specific cost of the specific item sold.
		However, the process of tracking of costs and then assigning those costs to the units sold and the units on hand could be too expensive for the amount of income tax savings.
		To arrive at the estimated ending inventory at cost, we multiply the estimated ending inventory at retail ($10,000) times the cost ratio of 80% to arrive at $8,000.
	www.accountingcoach.com /online-accounting-course/12Xpg03.html (1344 words)

	COST OF GOODS SOLD ADJUSTING ENTRY
		If there is nothing left, then this goods available for sale is the cost of the things you sold.
		But we returned some that cost $3,000 and we took some discounts so we paid less by $800, so if we sold all this stuff, our cost would be $57,700.
		Cost of goods sold is an expense that gets emptied into income summary during the closing process, as follows:
	web.cba.neu.edu /~sbruns/cogs.htm (499 words)

	Cost Of Goods Sold (Site not responding. Last check: 2007-10-22)
		Basically, Cost Of Goods Sold is the amount that you have invested in the product sold (cost).
		A good example of this would be Mary Kay, Avon, or Tupperware.
		The cost of five of the frames, motors, and harnesses is figured into the cost of goods sold.
	home.swbell.net /fbris/schcinfocogs.html (426 words)

	HELP! Sm Bus Solutions :: Items & Cost of Goods Sold (COGS) in QuickBooks, Part 1
		Once a sale is made, the cost value of the Item you sold is transferred from your inventory asset account to the Cost of Goods Sold (COGS) account.
		When a broom is sold, the $5.00 cost of each of these brooms is transferred to the Cost of Goods Sold account and the money you received for them, $9.99, goes to the Sales account.
		You have to make use of the "This item is purchased for and sold to a specific customer:job" feature to allow you to specify the COGS (or outside labor) accounts and the income account.
	www.helpsbs.com /tech/qbooks/cogs.html (1123 words)

	Computing Your Cost of Goods Sold
		Beginning in 2002, qualifying small business taxpayers whose average annual gross receipts for the prior three tax years are between $1 million and $10 million may qualify for a less burdensome accounting method for their inventory costs.
		Under this method, inventory costs of raw materials purchased for use in producing finished goods and merchandise purchased for resale are deductible in the year the items are sold.
		As raw materials are purchased, their costs (including delivery charges) are debited to the raw materials account.
	taxguide.completetax.com /text/c60s15d150.asp (724 words)

	Schedule V - Cost of Goods Sold
		Review the cost of goods sold schedule to compare the labor costs versus purchase costs in inventory.
		If manufacturing, reasonable labor costs should have been added to the cost of producing the inventory as opposed to simply buying and re-selling it with minimal change.
		If the taxpayer is manufacturing goods, are labor costs that were added to the cost of producing inventory also claimed in the computation of the MIC (capitalized labor)?
	www.ftb.ca.gov /businesses/credits/mic/references/initial/schv.html (92 words)

	Cost of Goods Sold report - osCommerce Community Support Forums
		Being that the orders I wanted a "cost of goods" report on were old, I then used phpMyAdmin and manually entered a cost of every product sold in that range.
		Now, it seems to me that if the "products" table has a "products_cost" field (added with 1st mod mentioned), then this could be recorded at the time of checkout along with the other fields that are entered into the "orders_product" table.
		Recording the cost at the time of the sale seems to make the best sense to account for changing costs of one's products, should they vary with time.
	forums.oscommerce.com /index.php?showtopic=148921 (467 words)

	Re: Residential Home Costing Software - Average Cost of Goods Sold :: Builders Websource®
		My main goal is to come up with a solid number for the average hard costs on custom residential projects -- the cost of goods sold.
		If you cost estimates are off by even just 5%, your profit margin could go into the tank.
		Similarly, if a lack of clear cost understanding causes you to overbid a project, you might lose the job since someone else with better cost data could underbid you.
	www.builderswebsource.com /_discBT/00000d42.htm (430 words)

	R4530 Cost of Goods Sold Summary
		Shows the value of all goods sold for the date range you specify.
		For each item a cost is shown based on the cost field in the Product Screen's Stock Level tab.
		A total cost per item is calculated as is a grand total for all items sold.
	www.mailware.com /html/R4530.htm (87 words)

	QuickBooks Community - Employee Leasing - expense or cost of goods sold? (Site not responding. Last check: 2007-10-22)
		Employee Leasing - expense or cost of goods sold?: Do you tend to code this as an expense or as...
		Re: Employee Leasing - expense or cost of goods sold?: I did it for a trucking company as COGS and...
		I have to track which labor costs go to each job but Quickbooks does not handle this well.
	www.quickbooksgroup.com /webx/.eebab5b?50@4.7rdma150fU6@ (457 words)

	Illinois University Council on Career and Technical Education
		Distribute handout on Cost of Goods Sold Information Sheet Handout/Visual 1 that calls attention to the concept of COGS for businesses.
		Present Visual 3, which contains a step-by-step analysis of the cost of each ingredient in the sandwich.
		The teacher will approve only food items that can easily be served in a restaurant as one unit or sold by the pound or similar quantities.
	www.csu.edu /UniversityCouncil/costofgoods.html (831 words)

	PTDA \| Cost of Goods Sold
		Cost of Goods Sold Data Transmission Format: Overview
		The Cost of Goods Sold Data Transmission Format is a single, standardized format to provide COGS data in an ASCII format suitable for being transmitted via floppy disk, e-mail or the Internet.
		Cost of Goods Sold Data Transmission Format version 1.0 currently is in use.
	www.ptda.org /Content/NavigationMenu/IndustrySolutions/IndustryStandards/CostofGoodsSoldFormat/default.htm (194 words)

	Cost of Goods Sold (Site not responding. Last check: 2007-10-22)
		This item represents all costs directly allocated by the company to production, such as material, labor and overhead.
		The total operating costs for non-manufacturing companies are considered as cost of goods sold if a breakdown is not available.
		This item represents aggregate expenses directly related to purchasing merchandise or manufacturing goods subsequently withdrawn from finished goods inventory and sold to customers.
	www.compustat.com /support/wi/private_shrd/dataguide/cogs.html (449 words)

	CCH Business Owner's Toolkit \| Computing Your Cost of Goods Sold
		Manage your personal wealth with the information that you need regarding investment, insurance, tax, retirement, and estate planning.
		If your business makes or buys goods to sell and maintains an inventory, you're entitled to deduct the cost of goods sold from your revenues in computing your taxable income.
		Qualifying small business taxpayers whose average annual gross receipts for the prior three tax years are $1 million or less or over $1 million up to $10 million may (in certain cases) qualify for a less burdensome accounting method for their inventory costs.
	www.toolkit.cch.com /text/p07_2330.asp (809 words)

	Cost of Goods Sold - COGS (Site not responding. Last check: 2007-10-22)
		It is essentially a cost of doing business, such as the amount paid to purchase raw materials in order to manufacture them into finished goods.
		Introduction to Fundamental Analysis - Here's an easy-to-understand tutorial on the techniques of analyzing a company's financial statements, including the annual and quarterly reports, the auditor's report, and much more.
		Measuring Company Efficiency - We look at a retailer's inventory turnaround times, its receivables as well as its collection period.
	baystreet.investopedia.com /terms/c/cogs.asp (148 words)

	Partnership Cost of Goods Sold Information
		Lower of cost or market as described in Regulations 1.471-4
		Check if there was a writedown of subnormal goods as described in Reg.
		If the LIFO inventory method was used for this tax year, enter percentage (or amounts) of closing
	www.cpawebsite.com /mjgbiz/ptshform/ptcogs.htm (85 words)

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