How do you calculate cost of goods sold?
Calculating Cost of Goods Sold Knowing the cost of the goods you sell allows you to take a larger tax deduction, so it is important to keep track of all costs related to your inventory of products. Calculating Cost of goods sold for products you manufacture or sell can be complicated, depending on the number of products and the complexity of the manufacturing process. This “how to” takes you through the calculation for one product, so you can see how it is done and what information you will need to provide your CPA. You will need a CPA or tax professional to calculate COGS for your business income tax return Time Required: Time Depends on the Variety of Products and Whether You Re-sell or ManufactureHere’s How: • First, here are the basic components of the Cost of Goods Sold (COGS) calculation: Beginning Inventory Cost + Cost of Additio
