Cost of Goods
Cost of Goods (i.e. merchandise) Sold
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Opening inventory, at retail
is defined as the value of merchandise at the start of a period, value recorded
at the current selling price.
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Opening inventory, at cost
is defined as the value of the merchandise at the start of a period, value
recorded at cost price.
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New net purchases
is defined as the billed cost of merchandise purchased. It is calculated by deducting
returns and allowances to vendors from gross purchases.
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Inward transportation (i.e. freight)
is defined as the expense incurred for transporting the goods to the
facility.
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Total cost of goods
is defined as the sum of cost of merchandise purchased and inward transportation.
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Total merchandise handled at cost
is defined as the total value obtained after adding opening inventory
and total cost of the purchases.
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Closing inventory, at cost
is defined as the amount derived from inventory left at the end of an operating
period when calculated at cost.
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Gross cost of merchandise sold
is defined as the total merchandise handled with cost of the closing
inventory deducted.
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Cash discount
is defined as a reduction in the price of an item for sale allowed if payment is made within a
stipulated period. (Thefreedictionary.com)
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Net cost of the goods sold
is defined as the value obtained after cash discounts are deducted from cost of
merchandise sold.
