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Accounting Cost of Goods Sold (Per-Unit) Calculator

Calculate cost of goods sold per unit and total COGS using the weighted-average inventory method.

Your Details

Overview

Use this Accounting Cost of Goods Sold (Per-Unit) Calculator to estimate your weighted-average inventory cost per unit, total COGS, units sold, and ending inventory value. Enter opening inventory, purchases, and the units remaining at period end.

How it works

The calculator first adds the cost and quantity of beginning inventory to the cost and quantity of purchases. It divides the total cost available for sale by the total units available to find a weighted-average unit cost. Units sold equal available units less ending inventory. Total COGS is then the units sold multiplied by the weighted-average cost per unit.

How to use this calculator

  1. 1Enter the number of units and cost per unit in beginning inventory.
  2. 2Add the number of units purchased during the period and their average cost per unit.
  3. 3Enter the number of units left in ending inventory.
  4. 4Check that ending inventory does not exceed units available for sale.
  5. 5Review the weighted-average COGS per unit and total COGS.

Example Calculation

Beginning inventory units

100

Beginning cost per unit

$10

Units purchased

400

Purchase cost per unit

$12

Ending inventory units

150

Cost of goods sold per unit

$11.60

There are 500 units available at a total cost of 5,800. The weighted-average cost is 11.60 per unit; 350 units sold produce estimated COGS of 4,060, and ending inventory is valued at 1,740.

Frequently asked questions

What is cost of goods sold per unit?

It is the inventory cost assigned to one unit sold. In this calculator, it is calculated using the weighted-average cost of available inventory.

How is weighted-average COGS calculated?

Total beginning inventory cost and purchase cost are divided by total units available for sale. That average cost is applied to units sold and units remaining.

What counts as units sold in this calculator?

Units sold are calculated as beginning inventory units plus purchased units, minus ending inventory units.

Can ending inventory be greater than units available for sale?

No. Ending inventory should not exceed beginning inventory plus units purchased. Check the quantities entered if it does.

Does this calculator use FIFO or LIFO?

No. It uses the periodic weighted-average method. FIFO and LIFO can produce different COGS results when inventory costs change.

Should freight and discounts be included in the unit cost?

Include them only if your accounting policy treats them as inventory costs. Use costs that are consistent with your records and reporting method.

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Assumptions and warnings

Assumptions

  • This calculator uses the periodic weighted-average inventory method.
  • All entered unit costs are in the same currency and exclude amounts not included in inventory cost.
  • Beginning inventory and purchases are assumed to be available for sale during the same accounting period.
  • Ending inventory units must not exceed total units available for sale.
  • Results are estimates based on the inventory quantities and costs entered.

Warnings

  • This calculator provides an accounting estimate only and is not professional accounting or tax advice.
  • Inventory costing policies, write-downs, freight, discounts, returns, and local reporting rules can change the reported COGS.
Accounting Cost of Goods Sold Per-Unit Calculator