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Costs Price Profit and Cost of goods sold

  1. #1
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    Costs Price Profit and Cost of goods sold

    I was wondering if there's an easy way of calculating the profit of an item that has changing costs and changing prices constantly. I believe this would be considered something like Cost of goods sold but having a profit amount at the end of it.

    For example, I buy item A at $20 and quantity of 100 on Oct-24th. I then sell it at various prices (and I'll have a list like this for example:
    10qnt $29
    10qnt $28.80
    20qnt $28.50
    30qnt $28.45

    I then buy more (before I even sell all 100 qnt of my old stock) at $19.50 or so with another 100 qnt. on say Oct-28th

    I continue to sell from Oct-28th below:
    20qnt $27.50
    20qnt $26
    20qnt $25
    etc. etc.

    Anyways, I need to make excel know which qnt that I sold are going to be the price of $20 and which ones are going to be the price of $19.50 for profit.

    so if you see above, I have 10qnt $29, 10qnt $28.80, 20qnt $28.50, 30qnt $28.45, 20qnt $27.50 (90qnt total so far)... all of these should be at the cost of $20... then I have the next one which is 20qnt $26 and this should be 10qnt at $20 cost (to make 100qnt total) and then another 10qnt at $19.50 COST. then the rest for 20qnt $26 profit and $19.50 cost.. etc...

    Anyways, sorry for the long example. Basically, I'm going to have this on my excel for costs:

    Item# Cost Qnt
    ItemA $20 100
    ItemA $19.5 100
    ItemB $50 200
    ItemB $45 100

    and then for Sale Price table:

    Item# Price Qnt
    ItemA $29 10
    ItemA $28.80 10
    .....etc.
    ItemB $55 20
    ItemB $54 15
    ...etc.


    The program just needs to know how to organize it in a way that it counts how many qnt has sold for ItemA (using the qnt inputted from "Sale Price" table and once it reaches 100qnt at $20 then it goes on to the $19.50 cost price with another 100qnt until there are 100 qnt of those sold on the "sale price" table. Then it should spit out the profits for each line. A new table could be used, or a "Profit" Column can be made on the "Sale Price" table in column C.

    I hope this makes sense. This I'm sure is very common in the accounting world and I believe it calculates cost of goods sold but I needed to know what the profit is for each line. Thanks guys you are extremely helpful every single time!

  2. #2
    Forum Expert royUK's Avatar
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    Re: Costs Price Profit and Cost of goods sold

    To best describe or illustrate your problem you would be better off attaching a dummy workbook, the workbook should contain the same structure and some dummy data of the same type as the type you have in your real workbook - so, if a cell contains numbers & letters in this format abc-123 then that should be reflected in the dummy workbook.

    If needed supply a before and after sheet in the workbook so the person helping you can see what you are trying to achieve.

    Doing this will ensure you get the result you need!
    Hope that helps.

    RoyUK
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    For Excel Tips & Solutions, free examples and tutorials why not check out my web site

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