How do you calculate COGS on an income statement?

How do you calculate COGS on an income statement?

COGS, sometimes called “cost of sales,” is reported on a company’s income statement, right beneath the revenue line.

How do you calculate the COGS?

At a basic level, the cost of goods sold formula is: Starting inventory + purchases − ending inventory = cost of goods sold.

What is cost of goods sold with example?

These costs are also referred to as the cost of the sales or cost of the services and play a very important role in the decision-making process. Examples of Cost of Goods Sold include the cost of the materials, prices of the goods purchased for reselling further, the distribution cost, etc.