How Do You Calculate Cost Of Goods Sold Online?
To calculate the cost of goods sold online, you need to consider the cost of direct materials, direct labor, and overhead expenses incurred in the production process. You can then deduct the beginning inventory from the sum of the costs incurred during the year and ending inventory to find the cost of goods sold. Additionally, you may need to factor in other expenses like shipping and handling costs, merchant fees, and returns to arrive at an accurate cost of goods sold for your online business.