COGS calculation for Dominios

In the COGS example for Domino's we calculated COGS as per the number of pizzas sold for that month. Assuming "X" amount goes into making 1 pizza and if 1000 pizzas are made den it would be 1000 * "X". Now in a real life scenario i am assuming domino's would have an inventory of ingredients for a week or a month, if for a month than some would be used the following month. So in this situation how would the COGS be calculated for that given month?

1 Answer(s)


COGS for a particular month includes only the raw materials that are used in the given month.