Figuring COGS

[helpme]

I am trying to find an easy way to find cogs. anyone care to share how they figure them?? I have quickbooks, but I am having problems integrating the 2. Any ideas or suggestions would be great. thanks

[pdxdoug]

COGS - cost of goods sold is the cost each + cost of shipping each.

Now, there are Average cost each, FIFO cost and LIFO cost.

From a quick Google search on Quickbooks COGS:
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Quickbooks uses a rolling average:

QuickBooks recalculates the average cost of an item every time you record the purchase of more units of the item. It adds the cost of the new items to the cost of the old stock and then divides by the total number of new and old items

An example

10 units @ 10 each = 100
Sell 6 units -60
##########
New cost for 4 units 40.00
15 units $ 9.50 142.50
##########__
New cost 182.50
On hand 19 units 9.605 each

Your original calculation may have been
to average out all your purchases, but
Quickbooks does not work that way.
An example of the way QuickBooks does not work
(but how you may have been making a calculation) is to
take total purchases 242.50
and divide by 25 units = 9.70 each

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Most POS systems have the following COGS entries for every inventory item:

Average Cost
Last Cost
Standard Cost

Average is historical - what you get in Quickbooks. Last Cost is your last purchase. Standard is the cost you set to iron out seasonal fluctuation differences in purchasing.

When receiving new product, most POS systems should show you your Average Cost, Standard Cost and profit percentages so you can change your sell price based on your last purchase.

I have to admit that I don't use Quickbooks for my POS, Inventory, Purchasing or Accounts Receivable because it falls short in those areas.

I do use Quickbooks for Accounts Payable and Payroll.

ZenCart itself doesn't care or keep track of COGS.