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What is inventory cost?

What Cost of Sale (COS) do I allocate, if any - to written off inventory if I sell it in the future?

  • Please also keep in mind the reason for my query is the following: I am working on a commission GP split with my company and they are telling me that I have to allocate a COST to any sales on the written off stock (therefore decreasing my income). I am debating that this written off inventory if sold should be at a R0 cost - therefore the GP would be higher. PLEASE ADVISE.

  • Answer:

    no; once written off, they are pure profit to help you make up for the loss. keep in mind; spend ZERO TIME selling them, or thinking about them or you will LOSE MORE $$$.

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no; once written off, they are pure profit to help you make up for the loss. keep in mind; spend ZERO TIME selling them, or thinking about them or you will LOSE MORE $$$.

Generally, you wouldn't assign a cost, but the proceeds from the sale would be charged to a contra cost of sales account, something like Proceeds From Sale of Scrap (or something similar)

Generally, you wouldn't assign a cost, but the proceeds from the sale would be charged to a contra cost of sales account, something like Proceeds From Sale of Scrap (or something similar)

buz

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