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Rodney_165
January 28, 2020
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COST OF GOODS SOLD

  • January 28, 2020
  • 1 reply
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Hello, If i use the standard method of calculating Cost of Goods sold i.e Opening stock + Purchases - Closing stock will i get the same result with what quickbooks calculates when it uses the weighted average cost?

Best answer by Ashleigh1

Hi Rodney_165, 

 

The way in which QuickBooks, works out the cost of goods sold is no by the weighted average cost, it works it out using the first in first out system. It is the cost of sale is calculated on the actual sale. Here is a link that will help you with this. 

https://quickbooks.intuit.com/learn-support/en-uk/help-articles/what-is-fifo-and-how-is-it-used-for-stock-cost-accounting/00/368010

1 reply

A
Ashleigh1Answer
January 28, 2020

Hi Rodney_165, 

 

The way in which QuickBooks, works out the cost of goods sold is no by the weighted average cost, it works it out using the first in first out system. It is the cost of sale is calculated on the actual sale. Here is a link that will help you with this. 

https://quickbooks.intuit.com/learn-support/en-uk/help-articles/what-is-fifo-and-how-is-it-used-for-stock-cost-accounting/00/368010

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