Cost of Goods Sold Calculator
An online calculator is a virtual tool that can be used for calculating many things, from the amount of monthly payment to loan scheme that you might take from the bank. In a broader sense, there is also a calculator that can be used by a businessman who wants to control and manage the financial situation of his company or by a finance managers who wants to calculate the profit of products being sold by their companies. One tool that can be used is called Cost of Goods Sold (CoGS) calculator.
First thing to answer: what is CoGS calculator anyway? Basically, it is a calculator often used to calculate the cost of selling products. Every business which engages in the field of selling products and goods must have a huge stock of products. During certain periods, those goods must be sold successfully while at the same time the rest of the goods – that have not been sold yet – might be stored in the warehouse. And in the same period, the goods has to be bought again to maintain its buffer stocks with different price than they bought before. CoGS calculator is mainly used for recording the value of goods that have been sold and those which are not sold yet. It can be calculated based on specific period, where the common period is month period.
Using this template below, you will find the CoGS for the same products would vary over months based on the price when they bought the item. And it would affect the profit calculation of the company. It could be higher or lower depends on company policy. And on some cases, the increase of CoGS will increase the price of those goods to their customer in order to maintain the same profit.