Home1 Practical Small Business MagzineHow to Keep Good Business RecordsCost of Goods Sold, or the Dreaded COGS


Cost of Goods Sold, or the Dreaded COGS — 1 Comment

  1. For those of you who have small manufacturing businesses, such as furniture making or other creative outlet, figuring the costs of goods sold will be a little more complex as you have to track how much you use of each type of material used in the construction of the item. Then, figuring the cost to produce for each type of material used. Be sure to account for waste materials, such as cloth remnants, or other types of materials. For example: It may take only 3 square feet of cloth to make each item, but due to the size of the roll of cloth and the shape of the pattern, you might need to use 4 square feet of cloth for each pattern piece.

    Happy Accounting,


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