what is the exact difference between cost of sales and cost of goods sold?
tirthesh shah
(student)
(125 Points)
Replied 03 May 2011
the term cost of sales shall include alongwith COGS(cost of goods sold) and various selling & distribution expenses
howver COGS only includes any expenditure incurred to bring goods into saleable conditions in additoin to procurement cost of goods
| Originally posted by : tirthesh shah | ||
 |
the term cost of sales shall include alongwith COGS(cost of goods sold) and various selling & distribution expenses howver COGS only includes any expenditure incurred to bring goods into saleable conditions in additoin to procurement cost of goods |
 |
agreed cost of sales comes after addind selling and distribution cost
CA.Naveen Kailkhuri
(CA)
(38 Points)
Replied 03 May 2011
There is no prescribed format of a Cost sheet. It may change from industry
to industry. A specimen format of a Cost Sheet is given as under:
A. Materials Consumed :
Purchases ..............
Add : Opening Stock of Raw material ..............
Less : Closing Stock of Raw Material ..............
Direct Material consumed ..............
C. Direct Expenses ..............
Add : Opening Stock of Work-in-Progress
Less : Closing Stock of Work-in-Progress ..............
H. Total Cost of Production (F + G) ..............
Add : Opening Stock of finished Goods ..............
Cost of Goods available for sale ..............
Less : Closing Stock of finished Goods ..............
I. Cost of production of goods Sold or cost of good sold ..............
J. Selling and Distribution Overheads ..............
K. Total Cost (I + J) = Cost of Sales ..............
L. Profit ..............
M. Sales (K + L) ..............
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