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