Cost of goods sold not average itself

Question

Just had a look at cost of goods sold in MYOB.

As far as I know MYOB is using the average cost for the cost of goods sold which should increase the COGs price as the inventory goes down.

However, the COGs price stay flat as one price, the cost does not average itself.

Anyone can explain this to me ?

Kind Regards,

David

gavin12345 · Answer

Hi&nbsp;alfa2143&nbsp;&nbsp;Ignoring GST, purchase 10 items for $600, average cost is $60. When you sell 3, the COGS should be $180 - $60 * 3. The Units remaining should be 7, the value should be $420. Average cost still&nbsp;$60 even though inventory down to 7. Therefore COGS stays the same until - you purchase more units for a different price, then COGS get recalculated.&nbsp;RegardsGavin

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Cost of goods sold not average itself

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