cost of goods sold $ 568,825 $ 351,650 $ 316,300 ending inventory 103,900 94,250 99,000 use the above information to compute inventory turnover for year 3 and year 2, and its days' sales in inventory at december 31, year 3 and year 2. from year 2 to year 3, did palmer improve its (a) inventory turnover and (b) days' sales in inventory?
The cost of goods sold will be $351,650 for the above questions after all calculations.
Cost of Goods Sold (COGS) refers to the direct costs of manufacturing the goods that a business sells. This amount includes the cost of materials and labor directly used in manufacturing the goods. Excludes overhead costs such as sales and field service costs.
Cost of Goods Sold (COGS) includes all costs and expenses directly related to the production of goods.
COGS does not include overheads or overheads such as sales and marketing.
COGS is subtracted from sales (Sales) to calculate Gross Margin and Gross Margin. The higher the COGS, the lower the margin.
The value of COGS depends on the accounting standard used for calculation.
COGS differs from operating expenses (OPEX) in that OPEX includes costs that are not directly related to the production of goods or services.
