The cost of supplies used during the period is determined by the calculation ______.

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22-08-2022
Business

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The cost of supplies used during the period is determined by the calculation ______.

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-08-26T17:37:32+02:00

The cost of supplies used during the period is determined by the calculation as :

Balance of supplies at the beginning + supplies which are purchased during the period - balance of supplies at the end

The cost of goods sold is how much it will cost to the business to produce the items which it is selling. The calculation of the cost of goods sold is focused only on the value of the inventory of business.

A simple formula used to calculate the cost of goods sold is to take amount of beginning inventory value and then add any purchases or other costs in it and after this subtract the ending inventory value.

The cost of goods sold includes not only the products in the business's inventory for sale, but also the labor to produce and ship the products as well as the parts and materials required to make them.

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