A cost of sales template is a crucial document which describes the direct cost attributable to the production and supply of goods by a company or organization. There are many circumstances which are dependent on cost of sales, such as direct labor, materials, and supply cost which are included in the cost of commissions associated with the sale. A cost of sale is calculated as beginning inventory added to purchases which are subtracted through ending inventory. This document defines costs spent on the various circumstances in the preparation of goods along with other expenses that occur during supply of goods. It is an accounting tool which helps to include all expenses as well as expenditures in the actual prices of items.