Definition
Cost of goods used
The inventory cost attributed to product used during a defined period and scope, the dollar counterpart of actual usage when valued at your cost basis.
Formula
Cost used = beginning inventory cost + purchases + transfers in − transfers out − ending inventory cost
Worked example
Opening liquor cost $8,400. Purchases $3,200. Ending count valued at $7,100. No transfers. Cost of goods used = 8,400 + 3,200 − 7,100 = $4,500 for the period. Divide by beverage sales to get pour cost percentage.
When operators use this
Reach for cost of goods used when the meeting is about dollars, not ounces. Pair it with pour cost on the same period. Invoice price changes belong here the week they land; do not wait for the next printed cost sheet. pour cost control and pour cost method keep the formula next to the product page.
Common mistakes
Mixing food invoices into beverage COGU, or using last year's bottle cost on this week's count, turns the ratio into folklore. Credits and transfers must use the same cost basis as the count. If the unit on the invoice is a case and the count is bottles, convert before you add.
How ExactPour handles it
ExactPour values counts from product cost (including invoice OCR updates) and uses the same period boundaries as variance. Cost of goods used feeds pour-cost and category margin views so the arithmetic matches what you counted.
Qualification
Credits, returns, freight, and taxes depend on the operation's accounting policy and should be handled consistently period to period.