Definition |
- In the manufacturing industry, it refers to the cost of finished goods in its beginning inventory plus the cost of goods manufactured minus the cost of finished goods in ending inventory.
- In the manufacturing industry, it refers to the cost of finished goods in its beginning inventory plus the cost of goods manufactured minus the cost of finished goods in ending inventory
*Cost of sales (retailing) = Cost of merchandise in its beginning inventory + Cost of merchandise purchased - Cost of merchandise in its ending inventory *Cost of sales (manufacturing)= Cost of goods in its beginning inventory + Cost of goods manufactured - Cost of finished goods in ending inventory
|