@Jester32t wrote:
Or am I simplifying or thinking about it wrong?
You only have to do an internet search for "cost of goods sold formula" to discover the one that is virtually universally accepted and relatively simple:
- Beginning Inventory (at the beginning of the year)
- Plus Purchases
- Minus Ending Inventory (at the end of the year)
- Equals Cost of Goods Sold
EX:
$14,000 inventory at the beginning of the year
+ $8,000 purchases during the year
- $10,000 ending inventory
= $12,000 cost of goods sold.
