Cost of Goods Purchased Calculator

Calculate Cost of Goods Purchased







Formula

The formula to calculate the cost of goods purchased is:

\[ COGP = P - R/A - D + F \]

Where:

Definition

Example

Let's say the total amount of purchases (P) is $10,000, the purchase returns or allowances (R/A) are $500, the purchase discounts (D) are $200, and the inbound freight (F) is $300. Using the formula:

\[ COGP = 10000 - 500 - 200 + 300 \]

We get:

\[ COGP = 9600 \]

So, the cost of goods purchased is $9,600.

Extended information about "Cost-of-Goods-Purchased-Calculator"

Calculation of Cost of Goods Sold

Definition: The cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold by a company.

Formula: \( \text{COGS} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \)

Example: \( \text{COGS} = 10000 + 5000 - 2000 \)

Cost of Goods Calculation

Definition: This calculation determines the total cost of goods available for sale during a period.

Formula: \( \text{Cost of Goods Available for Sale} = \text{Beginning Inventory} + \text{Purchases} \)

Example: \( \text{Cost of Goods Available for Sale} = 8000 + 3000 \)

How to Find Cost of Goods Purchased

Definition: The cost of goods purchased is the total cost incurred to acquire inventory during a period.

Formula: \( \text{Cost of Goods Purchased} = \text{Purchases} + \text{Freight In} - \text{Purchase Returns and Allowances} \)

Example: \( \text{Cost of Goods Purchased} = 4000 + 500 - 200 \)

Calculate Cost of Goods Available for Sale

Definition: This calculation determines the total cost of goods available for sale during a period.

Formula: \( \text{Cost of Goods Available for Sale} = \text{Beginning Inventory} + \text{Purchases} \)

Example: \( \text{Cost of Goods Available for Sale} = 7000 + 2500 \)