How do I figure out the cost of merchandise purchases for the year?
In the account book, under payables you should have everything you spent on purchases. When you add that for the fiscal period, you should have a total.
Is that what you meean?
Sra
Thnx!!! :-D
To figure out the cost of merchandise purchases for the year, you need to gather some information and perform a few calculations. Here are the steps:
1. Start by collecting all the purchase invoices or receipts related to merchandise purchases made during the year.
2. Analyze each invoice or receipt and identify the total amount paid for each purchase. This includes the cost of the merchandise itself, as well as any additional costs such as taxes, shipping charges, or import duties.
3. Add up the total costs for all the purchases made throughout the year. This will give you the total cost of merchandise purchases.
4. If you are using an accounting software or have records of inventory, check if there are any opening or closing inventory values. If so, factor them into the calculation.
5. If there are any returns or refunds related to merchandise purchases, subtract the relevant amounts from the total cost.
6. Once you have gathered all the necessary information, you can now calculate the cost of merchandise purchases for the year by subtracting any returns or refunds from the total cost.
Remember to keep accurate records of all your merchandise purchases, as it will help in calculating your business's cost of goods sold (COGS) and determine the profitability of your operations.