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Mar 27, 2022 12:43 AM UTC
Question

Where does Cost of Goods Sold expense amount come from?

Is the Cost of Goods sold expense taken from the Product Cost in the Inventory?

2 replies

PrachiJoshi
Mar 28, 2022 3:47 PM UTC

Yes, on first in first out basis.

Mar 28, 2022 4:41 PM UTC

Thank you for your reply. To clarify how the First in First Out works then, is the cost of goods sold expense coming from the first supplier invoice that paid for the inventory being sold? Or is the COGS expense coming from the Product and Services list, Purchasing Cost field? Thanks, Ruth