How to Use the COGS Calculator**

The COGS (Cost of Goods Sold) Calculator is a straightforward yet effective tool designed to assist businesses in calculating the total cost of goods sold during a specific period. This metric is crucial for determining gross profit and understanding production costs. Follow these steps to use the calculator:

Step 1: Enter Beginning Inventory**  

• Input the value of your inventory at the start of the accounting period in the “Beginning Inventory (₹)” field.  
• *Example:
  • If your inventory was valued at ₹50,000 at the beginning of the month, enter ₹50,000. 50000

Step 2: Enter Purchases**  

• Input the total cost of goods purchased or produced during the period in the “Purchases (₹)” field.  
• *Example:
  • If you purchased raw materials or goods worth ₹30,000 during the month, enter ₹30,00030000.

Step 3: Enter Ending Inventory**  

• Input the value of your inventory at the end of the accounting period in the “Ending Inventory (₹)” field.  
• *Example:
  • If your inventory was worth ₹20,000 at the end of the month, enter ₹20,00020000.

Step 4: Calculate COGS**  

• Click the “Calculate COGS” button to generate the result.
• The calculator will display the Cost of Goods Sold (COGS) in rupees (₹).

Understanding the Results**  

• COGS:** This represents the total cost of goods sold during the period.  
  • A higher COGS indicates higher production costs, which can reduce gross profit.  
  • A lower COGS suggests efficient inventory management and cost control.
• Example:**  
  • If your beginning inventory is ₹50,000, purchases are ₹30,000, and ending inventory is ₹20,000, your COGS would be ₹60,000.