# Cost of Goods Sold

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Cost of goods sold, abbreviated as COGS, is the compared inventory at the start of a given period to the end of a given period.

## cost of goods sold Formula

 $$\large{ COGS = IB + P - IE }$$

### Where:

$$\large{ COGS }$$ = cost of goods sold

$$\large{ IB }$$ = beginning inventory

$$\large{ IE }$$ = ending inventory

$$\large{ P }$$ = purchases during the year