Calculating the cost of goods sold gives a business insight into its performance and helps calculate profit. Many, or all, of the products featured on this page are from our advertising partners ...

Therefore, when an adjustment entry is made to remove the extra stock, this reduces the amount of closing stock and increases the COGS. Understated inventory increases the cost of goods sold.

Or that’s how much it would have cost if you managed to snag the offerings while they were available. All nine products sold out within an hour, with the $28 wildflower honey selling out in less ...