How to calculate cogs?

Akshay Dwivedi (Student CA IPC / IPCC) (79 Points)

23 April 2019  

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?