Earn your certification as a Financial Modeling & Valuation Analyst (FMVA)™. Register today!

Cost of Goods Sold Template

Cost of Goods Sold Template

This cost of goods sold template demonstrates three methods of COGS accounting: FIFO, LIFO and weighted average.

Below is a screenshot of the COGS template:

Cost of Goods Sold Template Screenshot

 

Download the Free Template

Enter your name and email in the form below and download the free template now!

Cost of Goods Sold Template

Download the free Excel template now to advance your finance knowledge!

 

Cost of Goods Sold (COGS) measures the “direct cost” incurred in the production of any goods or services. It includes material cost, direct labor cost, and direct factory overheads and is directly proportional to revenue. As revenue increases, more resources are required to produce the goods or service. COGS is often the second line item appearing on the income statement, coming right after sales revenue. COGS is deducted from revenue to find gross profit.

Cost of goods sold consists of all the costs associated with producing the goods or providing the services offered by the company. For goods, these costs may include the variable costs involved in manufacturing products, such as raw materials and labor. They may also include fixed costs, such as factory overhead, storage costs and depending on the relevant accounting policies, sometimes depreciation expense.

 

Accounting for Cost of Goods Sold

IFRS and US GAAP allow different policies for accounting for the cost of goods sold. Very briefly, there are four main types of cost of goods sold classifications.

  1. First-in-first-out (FIFO)
  2. Last-in-first-out (LIFO)
  3. Weighted average
  4. Specific identification

 

More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.

Financial Analyst Certification

Become a certified Financial Modeling and Valuation Analyst (FMVA)™ by completing CFI’s online financial modeling classes and training program!