COGS Part 5 (Inventory)
When to use
When constructing a basic financial model.
The next stage in calculating Inventory - Wastage needs to be calculated:
- The Inventory balance pre-wastage is taken from ‘Inventory on Hand’ =SUM(J127:J129)
- The wastage percentage is taken from row 101 =J101
- The wastage is the product of the two lines above =J111*J112
The Wastage can now be entered into the Control Account:
To work out the COGS the Inventory balance pre-COGS transfer needs to be worked out:
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