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Cost of Goods Sold (COGS) represents the direct costs of producing goods sold by a company. It includes the cost of materials and labor directly used to create the product. Understanding COGS is crucial for calculating gross profit, setting prices, and managing inventory efficiently. This calculator supports multiple inventory valuation methods (FIFO, LIFO, Weighted Average) for periodic and perpetual inventory systems.

Select your calculation method (Periodic, Perpetual, or Manufacturing). Enter beginning inventory, purchases, adjustments (discounts, returns, freight), and ending inventory. The calculator computes COGS, gross profit, gross margin, inventory turnover ratio, and provides performance analysis against industry benchmarks.