Cost of Goods Sold

TLE 10

Q4 W1

Open Ended

Color of your shirt + What you just ate = Your fictional name

Objectives for Today

• Identify the formula for Cost of Goods Sold

• Understand what makes the Income Statement

• Revenues and Expensees

COGS Formula

Beginning Inventory + Purchases - Ending Inventory

TGAS (Total Goods Available for Sale)

Beginning Inventory + Purchases

For example: Your business' beginning inventory is recorded on January 1 and ending is recorded on December 31. You have a beginning inventory of 500,000 PHP, made purchases valued at 250,000 and is left with an ending inventory of 150,000. Use the COGS formula.

Beginning Inventory + Purchases - Ending Inventory

Open Ended

You have a beginning inventory of 1,750,000 PHP, made purchases valued at 750,000 and is left with an ending inventory of 850,000.

Open Ended

Hatdog Corp had a beginning inventory of 25,000 PHP, made purchases valued at 10,000 and is left with an ending inventory of 10,000.