How do you calculate cost of goods sold? COGS = beginning inventory costs cost of purchased inventory – ending inventory is the formula you use to calculate the cost of goods sold. After that, use the ...

How do you calculate cost of goods sold? To calculate COGS, you need to multiply the beginning inventory cost by the purchased inventory cost minus ending inventory cost. Using this formula, gross ...

From there, most of the items listed on the income statement relate to expenses, such as the cost of goods sold—namely expenses for materials—tied to the production and sale of goods and services.