The cost of goods purchased includes all expenses incurred to obtain inventory, from purchasing to transportation and any allowances or returns. This calculator helps you quickly calculate the total cost of goods purchased with accurate inputs.

## Steps to Use the Cost of Goods Purchased Calculator

To use this calculator effectively, follow these steps:

- Input the total amount of purchases made in the period.
- Enter the freight-in cost, which includes transportation fees and handling costs.
- Optionally, enter the amount of any purchase returns or allowances.
- Click the 'Calculate Cost of Goods Purchased' button to get the result.

### Formula Used

The cost of goods purchased is calculated using the formula:

**Total Cost of Goods Purchased = Purchases + Freight-In - Purchase Returns/Allowances**

### Example Calculation

Let's assume the following details:

**Purchases:**$10,000**Freight-In Cost:**$1,000**Purchase Returns/Allowances:**$500

The total cost of goods purchased will be:

**Total Cost of Goods Purchased = 10000 + 1000 - 500 = $10,500**

This gives you the total cost of the goods purchased, considering all the elements.