How to Keep Track of the Cost of Goods Sold?
With jewelry making, how do you keep track of the cost of goods sold (COGS)?
You need to subtract this cost at the end of the year from your sales in order to get your actual net profit.
I understand what costs to include in the calculation.
What I don’t understand is how to keep track of COGS without entering each item as an inventory item into a software program.
That way the bag of 100 beads you buy for $1.00 can be tracked per bead… cause each jewelry piece contains different priced beads and quantities.
Without keeping track of inventory, you can’t calculate the COGS, thus how would you figure out what your net profit of sales is at end of year??
Or is everyone guestimating this?