How to calculate cogs?

Earlier we could simply calculate COGS by taking Opening Stock + Purchases - Closing Stock

But the format of the income statement has changed. Now it shows cost of materials consumed and Changes in inventories of work-in-progress, stock-in-trade and finished goods. I find the new format confusing and difficult to interpret. Could someone please explain what these line items mean with an example?

Replies (2)
cost of materials consumed would be the purchases in most of the cases and change in inventory simple means "opening stock minus closing stock".

What is you said is actually correct, and they are doing the same thing....but just in a different format
COGS = Op Stock +Pur -Clo Stock
or
COGS = Pur +Op Stock-Clo Stock

Since Op Stock-Clo Stock =Change In inventory.

therefore COGS = Pur + Change in Inventory.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details