what is cost of sale?

Question

I would also like to know how to workout the cost of sale

Answer 1

Why not look it up in wiki ?

In case that's a bit beyond you, just follow the link below :-)

Answer 2

It is the cost of whatever goods you sold. Here's a simple illustration: You bought a pair of shoes for $50. The following day, you decided to sell it to your friend for $75. The cost of sale would be $50 and your gross profit $25. In trading companies which sell voluminous items, the cost of sales is arrived at by deducting your ending inventory (what you have at the end of the fiscal period) from the sum of your total purchases for the period and your beginning inventory cost (what you have at the start of the fiscal period).