Amazon Cost of Goods Sold Calculator

Calculate Amazon's Cost of Goods Sold (COGS) to determine the direct costs attributable to the production of the goods sold by a company. This calculator helps you track inventory costs and optimize pricing strategies.

Input Parameters

Calculation Results

Calculation Formula

COGS = Beginning Inventory + Purchases + Direct Labor + Manufacturing Overhead - Ending Inventory

Where:
- Beginning Inventory: The value of inventory at the beginning of the period
- Purchases: The cost of inventory purchased during the period
- Direct Labor: The cost of labor directly involved in manufacturing the products
- Manufacturing Overhead: Indirect costs related to production
- Ending Inventory: The value of inventory at the end of the period

Result

Cost of Goods Sold (COGS): $0.00

Amazon Cost of Goods Sold Calculator Calculator Usage Guide

Learn how to use the Amazon Cost of Goods Sold Calculator calculator and its working principles

How to Use the Calculator

  1. Enter your beginning inventory value (the value of inventory at the start of your accounting period).
  2. Enter the total purchases made during the period (cost of inventory bought).
  3. Enter your direct labor costs (labor costs directly involved in producing the goods).
  4. Enter your manufacturing overhead costs (indirect production costs like utilities, rent, etc.).
  5. Enter your ending inventory value (the value of inventory at the end of your accounting period).
  6. Click the "Calculate" button to determine your Cost of Goods Sold.

Understanding COGS

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company. This includes the cost of the materials and labor directly used to create the goods, as well as any direct costs associated with their production.

Why Calculate COGS?

  • To determine your gross profit by subtracting COGS from revenue.
  • To understand your inventory management efficiency.
  • To comply with accounting standards and tax requirements.
  • To make informed pricing and purchasing decisions on Amazon.

Example Scenario

Suppose you started with $5,000 in inventory, purchased $10,000 more inventory during the period, incurred $2,000 in direct labor costs, had $1,000 in manufacturing overhead, and ended with $3,000 in inventory. Your COGS would be:

$5,000 (Beginning Inventory) + $10,000 (Purchases) + $2,000 (Direct Labor) + $1,000 (Manufacturing Overhead) - $3,000 (Ending Inventory) = $15,000 (COGS)