sam boyer acc 290 week 7

sam boyer acc 290 week 7 - Running head COST OF GOODS 1...

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Running head: COST OF GOODS 1 Cost of Goods Samatha Boyer Acc/290 11/13/2014 Karen Evans
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COST OF GOODS 2 Cost of Goods Before I go into how to find the cost of goods sold, I want to first explain what cost of goods is to allow a better understanding of what the steps are in calculating the cost of goods. Also what items are included in the cost of goods calculations. The cost of goods is the direct cost which would be related to the production of selling goods combined with the inventory needed to sell goods to customers. There are a few items which makes up the cost of goods sold inventory. These items include the materials, equipment, and the labor which is put forth to create the goods. (Kimmel) When calculating the cost of goods, I would first start out with calculating all of the
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Unformatted text preview: inventory I have in stock. This includes anything on the shelves for customers to buy and also anything I may have in the back room, also can be known as back stock. Next I would add in the total cost of all of the purchases I have made. This would include the totals of all outside venders including the weekly truck which brings in the product for the shelves. Finally I would then subtract the inventory I had left at the end of the period. Doing this would give me the total of what my cost of goods is going to be. (Kimmel) COST OF GOODS 3 References Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons....
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