LizMani
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Joined 4 years ago
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Cost of good sold seems incorrect
Hi All, I'm keen to get a better undertsanding of why our COGS seems incorrect for items that we buy and sell as inventory. I understand the basic principal of the average method applied but I struggle to understand why our cogs grows exponentially until we enter in another container of goods, I've attached a sample of an item & how the cost grows for the product. The item attached costs approximately $18.50 per item however at some stages through the month (e.g late April the average is over $2000). Any help would be appreciated please, Thanks, LizSolved799Views0likes2Comments