Cost of Sales Formula Excel Template

Prepared by Dheeraj Vaidya, CFA, FRM

dheeraj@wallstreetmojo.com

visit - www.wallstreetmojo.com
Particulars Amount
Opening Stock 230000.00
Purchases 1050000.00
Closing Stock 450000.00
Cost of Sales 830000.00
AMC limited recently reported its numbers. The shareholders have asked for an internal audit as they
believe the management has conceded certain facts. Mr. J & Co. were appointed as the internal
auditors of the company. He wanted first to calculate the gross profit of the company via production
records. He first wanted to calculate the cost of sales based on available information. You are required
to compute the cost of sales. He was given the following details

Particulars Amount
Inventory Turnover Ratio 5.00
Sales 100000000.00
Opening Stock 15000000.00
Purchases 75000000.00
Average Inventory 20000000.00
Closing Stock 25000000.00
Cost of Sales 65000000.00
XYZ a newly listed company in the stock exchange has reported below income statement. From
the below statement, you are required to compute the cost of sales.
Income Statement Amount
Revenue 9568000.00
Opening Inventory 1188990.00
Raw Material 3233230.00
Labor Cost for Raw Material 1888990.00
Selling Expenses 2399081.00
Administrative Expenses 1099091.00
Closing Stock 1212887.00
Net Profit -1454269.00
Purchases 5122220.00
Cost of Sales 5098323.00