Cost of Goods Sold

Joined
Apr 18, 2011
Messages
1
Reaction score
0
I purchase and resell custom engraved silver pendants, each with one ounce of silver. Over the years, many of these have become damaged due to errors in engraving. I have kept the items on inventory, since they hold real value even damaged, since they are made of pure silver.

Well, if you've been watching the price of metals lately, they skyrocketed in 2010.
So, instead of buying new pendants made of silver, I "traded in" the precious metal for new items made of the same material.

Consequence: Metal I may have purchased over the years at an average of $20/ounce I was able to get at a cost of Zero. I only had to pay setup, factory fees and shipping

Example:

I sent 100 of X, which the average cost was $22.00 each (mostly precious metal) and they were replaced with 100 new ones at an average cost of $5 each.

How do I account for this?
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top