Journal Entry for Cost of Goods Sold COGS The following Cost of Goods Sold journal entries outline the most common COGS COGS The Cost of Goods Sold COGS is the cumulative total of direct costs incurred for the goods or services sold including direct expenses like raw material direct labour cost and other direct costs. The job cost accounting journal entries below act as a quick reference and set out the most commonly encountered situations when dealing with the double entry posting of job costing. Buy Goods On Credit From A Supplier Double Entry Bookkeeping Once you prepare your information generate your COGS journal entry. . Expenses are recorded in a journal entry as a debit to the expense account and a credit to either an asset or liability account. Goods or stock or inventory all these words mean the same thing are classified as assets in accounting. The journal entry for a cash sale actually involves two possibilities.
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