How to CALCULATE COST OF GOODS SOLD // Cost of Sales

How to calculate the cost of goods sold, or the cost of sales for the Income Statement.
Cost of Goods sold/ Cost of sales are the price the company paid to get the products or services before selling them.

[tamianyahoda]

You saved me I spent 1 hour looking for a video to explain this, thank you

[withlovenandi]

As someone that never did accounting this was really helpful an easy to understand

[Nimitramartin.]

Thank you, i have subscribed because you have explained it so well that I already feel like an expert. ❤❤

[AsandaMalandiswe]

why is your nine like a seven, that confused me

[imanfatihah]

What if the questions doesn’t have purchases

[ashabid]

As i know, COGS & cost of sales aren't the same! COGS is the cost of sum of direct material + direct labor+ direct overhead... while cost of sales are both direct & indirect costs which aren't directly related to production or service deliver to the customer.
for example in hospitals, COGS are cost of direct materials(medical consumables & medication) + cost of doctors fees & nurses payroll + cost of overhead like clinical sites energy, water...etc. can you please explain that.

[NdabenhleSiboniso]

Can you please do an example with purchase returns and sale returns

[roialnet]

Is it not the two are different? Cost of goods sold are those incurred from supplier to your warehouse and cost of sales are those incurred when the product goes from your warehouse to your customer.

[landiwelingela]

Hi there where is the next video for net profit