How to Use the Cost of Goods Sold Formula

cost of goods sold  Instead of totaling the COGS directly by totaling inventory expenses, COGS is calculated by comparing the costs of beginning and ending Cost of Goods Sold = $1,000,000 + $700,000

The COGS ratio is your restaurant COGS as a percentage of total sales To calculate the COGS ratio, divide your total food and beverage costs by your total Your COGS should only include direct costs That is, the costs of acquiring or manufacturing the products that you sell in any given period In addition, COGS

The cost of goods sold accounts for all costs and outlays directly connected to the creation of goods Indirect expenses like sales and marketing and Costs include all costs of purchase, costs of conversion and other costs that are incurred in bringing the inventories to their present location and condition