![]() ![]() These measurements can take advantage of the beginning and ending inventory balances to determine an average inventory figure for the accounting period trends. You can also use the beginning inventory to calculate the average inventory, which is applied in measurements of the various performance indicators, such as the inventory turnover formula. So now you are aware of at least two CoGS calculation methods. As you see, the number is the same as the one that we got with another formula:Īmount of Goods Sold x Unit Price = Cost of Goods Sold. Continuing the example, the calculation will be as follows: $44,000 – $24,000 = $20,000.
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