Cost of Goods Sold Journal Entry: How to Record & Examples
Moreover, your COGS influences strategic decisions such as whether you can afford to upgrade equipment or need to renegotiate supplier contracts. Remember, a small error in COGS can lead to big missteps in business planning, so accuracy is non-negotiable. We use the perpetual inventory system in our company to manage the merchandise goods. Last-In-First-Out (LIFO)…