Average Cost

Average Cost is a Costing Method in Accounting

How do I find Average Cost?

d

Average Cost applies to both Inventory
and Cost of Goods Sold

d

Inventory Cost Methods

Goods Available for Sale:
GAS

Ending Inventory:
EI

Cost of Goods Sold
COGS

COGS=GAS less EI

EI=GAS less COGS

GAS=COGS + EI

Goods Available for Sale = 100,000

Ending Inventory= $65000

What is COGS?

Floating topic