What comes under cost of sales when making a profit and loss account from a trial balance?

Answer 1

Cost of sales includes costs of goods sold (ie inventory) and other direct costs (such as workers payroll and benefits, equipment used on the job) that can be distinguished for a particular project or job. To calculate cost of goods sold look around for a formula that looks something like this:

Beginning Inventory
+ purchases
+/- adjustments (I am forgetting some of them here)
- ending inventory
= cost of goods sold

Any payroll hours and its corresponding benefits also go into cost of sales.

Marketing costs can sometimes go into it also. It depends what type of business because each has their own unique costs.

Answer 2

Depends on the accounts available and the company policy.
Usually it's sales salary and benefits, shipping costs to customers, and any sort of selling entertainment expense.
There are many other costs that can be added but those are usually the big 3.

Answer 3

When I transfered info to a new PC system. I used the ending balance that the customer still owed as an inital entry to bring sales balances over. So basically it goes subrtract the ammount of money in bills you paid - from the ammount of things you sold. That leaves you with your profit.

Answer 4

Normally it is all category costs associated with getting the final product into the consumers hands...raw materials, manufacturing, labeling, UPC codes, boxes, shipping, sales commission, warehousing, import/export duties.

What ever that total is subtracted from Gross Revenue

Answer 5

The purchase of inventory, distribution costs , any and all taxes (unless exempt),transportation costs or shipping charges plus any discounts received.