WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 139.09

-0.8%

Nov 21 3:59 PM EST

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To: Zeev Hed who wrote (19468)	3/6/2001 6:56:59 PM
From: Road Walker	Read Replies (1) of 60323

Zeev, re: "The COGS for any given quarter always include cost of product in the pipeline and does not contain the cost of product sold earlier (from inventory) in the quarter, that prior inventory cost is in the prior quarter." I'm not an accountant. But I always thought the COGS was calculated at the variable cost on the specific components for the products sold in the reported quarter. In other words, if you bought a widget last quarter that went into the whatchamacallit you sold this quarter, you recorded the cost against this quarters sales. The cost went into inventory last quarter, but counts on GM this quarter???? Could very easily be wrong, any accountants listening? John

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