Cost of Goods Sold

The cost of goods sold is calculated as follows:

                                                                                                       £ 
Opening stock value                                                                  X
Add cost of purchases (or production, if manufacturing)    X
Less closing stock value                                                         (X)
Equals cost of goods sold                                                         X

 That is, to match sales and the cost of goods sold, you need to adjust the cost of goods sold, to allow for increases or decreases in stock levels.