What Records Should I Keep to Show Cost of Goods Sold?
What Records Should I Keep to Show Cost of Goods Sold? Cost of goods sold is the calculation which reflects the cost of turning raw materials or inventory into products for sale.Answer: You must keep records to support the cost of the raw materials you purchase and inventory items you order for resale. These supporting documents include: • Canceled checks • Cash register tape receipts • Credit card sales slips, and • Invoices. For example, if you purchase raw materials, keep invoices which show the amount purchased and date of purchase. You may also need to produce records which document the inclusion of these raw materials into your finished products. If you are purchasing items for resale, keep credit card receipts or canceled checks which show the date and amount purchased. You should also keep inventory records, particularly if you inventory items at the beginning and the end of your fiscal year.
