what is the exact difference between cost of sales and cost of goods sold?
5 Replies
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
(Guest)
| 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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