{"id":2607,"date":"2022-11-25T07:55:00","date_gmt":"2022-11-25T07:55:00","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=2607"},"modified":"2026-04-13T12:46:42","modified_gmt":"2026-04-13T12:46:42","slug":"calculating-cost-of-goods-sold-in-manufacturing","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/calculating-cost-of-goods-sold-in-manufacturing\/","title":{"rendered":"Cost of Goods Sold in Manufacturing \u2013 How to Calculate COGS"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The many cost-oriented KPIs in manufacturing accounting constitute some of the most important financial metrics for manufacturers and distributors. In this post, we look at the function and relevance of one such KPI \u2013 the Cost of Goods Sold.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2023\/02\/cost-of-goods-sold.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"571\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2023\/02\/cost-of-goods-sold-1024x571.jpg\" alt=\"cost-of-goods-sold-cogs\" class=\"wp-image-13709\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2023\/02\/cost-of-goods-sold-1024x571.jpg 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2023\/02\/cost-of-goods-sold-300x167.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2023\/02\/cost-of-goods-sold-768x428.jpg 768w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2023\/02\/cost-of-goods-sold.jpg 1502w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<!--more-->\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/calculating-cost-of-goods-sold-in-manufacturing\/#What_is_the_Cost_of_Goods_Sold\" >What is the Cost of Goods Sold?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/calculating-cost-of-goods-sold-in-manufacturing\/#What_is_the_Cost_of_Goods_Sold_formula\" >What is the Cost of Goods Sold formula?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/calculating-cost-of-goods-sold-in-manufacturing\/#COGS_and_inventory_valuation\" >COGS and inventory valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/calculating-cost-of-goods-sold-in-manufacturing\/#The_importance_of_COGS\" >The importance of COGS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mrpeasy.com\/blog\/calculating-cost-of-goods-sold-in-manufacturing\/#Cost_Of_Goods_Sold_in_manufacturing_systems\" >Cost Of Goods Sold in manufacturing systems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mrpeasy.com\/blog\/calculating-cost-of-goods-sold-in-manufacturing\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Cost_of_Goods_Sold\"><\/span>What is the Cost of Goods Sold?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Cost of Goods Sold (COGS) is a financial metric that depicts the total costs incurred with manufacturing or procuring all finished goods that were sold within a given financial period. COGS represents the expenses that a company needs to recover when selling an item in order to break even. These include all costs directly tied to producing finished goods like the costs of raw materials and components, direct labor, packaging and shipping, as well as manufacturing overheads.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">COGS does not include indirect overhead costs \u2013 general business expenses such as office supplies, administrative and marketing costs, leases and rent, etc. It also excludes the cost of manufactured or acquired goods that were not sold within the financial period and stayed in the finished goods inventory.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For manufacturers and distributors alike, keeping a keen eye on COGS depends heavily on having a good overview of one\u2019s inventory. This is a prime reason why rigorous <a href=\"https:\/\/www.mrpeasy.com\/inventory-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory management<\/a> and tracking practices are essential for ensuring a company\u2019s financial health.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Cost_of_Goods_Sold_formula\"><\/span>What is the Cost of Goods Sold formula?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Calculating the Cost of Goods Sold is quite straightforward. First, the total value of all finished goods at the beginning of a financial period is added to The Cost of Goods Manufactured or COGM. <a href=\"https:\/\/www.mrpeasy.com\/blog\/cost-of-goods-manufactured-cogm\/\" target=\"_blank\" rel=\"noreferrer noopener\">COGM<\/a> is a metric depicting the total manufacturing cost of all finished goods within a financial period. The total cost of finished goods that were not sold within the financial period is then subtracted from the sum to arrive at COGS. <\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>COGS = Beginning Finished Goods Inventory + Cost of Goods Manufactured \u2013 Ending Finished Goods Inventory<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is worth mentioning that for distributors or wholesalers that do not manufacture their own products, COGM is replaced simply with Purchases in the formula.<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>COGS = Beginning Finished Goods Inventory + Purchases \u2013 Ending Finished Goods Inventory<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Delving into the calculation in a little more detail, we can see that the COGS equation includes all three basic inventory types \u2013 the raw materials, WIP, and finished goods inventories. The extended COGS calculation goes as follows:<\/p>\n\n\n\n<ol style=\"list-style-type:1\" class=\"wp-block-list\">\n<li>Add together the values of the beginning raw materials inventory and purchases for the financial period. Then subtract the value of the ending raw materials inventory. This will return the Direct Material Cost.<\/li>\n\n\n\n<li>Add direct labor, packaging and shipping, and factory overheads. This will return the <a href=\"https:\/\/www.mrpeasy.com\/blog\/total-manufacturing-cost\/\">Total Manufacturing Cost<\/a> (TMC).<\/li>\n\n\n\n<li>Add together the values of the beginning WIP inventory and TMC. Then subtract the value of the ending WIP inventory. This will return the Cost of Goods Manufactured.<\/li>\n\n\n\n<li>Add together the beginning finished goods inventory and COGM. Then subtract the value of the ending finished goods inventory. This will return the Cost of Goods Sold.<\/li>\n<\/ol>\n\n\n<div class=\"banner-v1\">\n    <div class=\"banner__text\">\n        <div class=\"banner-v1__title\">Check your Cost of Goods Sold in real time<\/div>\n        <div class=\"banner-v1__desc\">MRPeasy allows you to get a grip on the finances of your manufacturing company.<\/div>\n        <div><a class=\"banner-v1__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_white\">Try for free<\/a><\/div>\n    <\/div>\n    <div class=\"banner__img\">\n        <img decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/themes\/mrpeasy\/assets\/images\/banner.svg\" alt=\"banner\">\n    <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"COGS_and_inventory_valuation\"><\/span>COGS and inventory valuation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Being largely dependent on the value of inventory items, the Cost of Goods Sold varies by which <a href=\"https:\/\/www.mrpeasy.com\/blog\/inventory-valuation-methods\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory valuation method<\/a> a company uses. There are four main inventory valuation methods that each affect COGS in their own way, also making them instrumental in leveraging net income.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the <strong>First In, First Out<\/strong>, or FIFO method, the first items purchased or manufactured get sold first. Since raw material prices tend to rise over time, the first procured items are generally cheaper. This usually lowers COGS and concurrently raises net income.<\/li>\n\n\n\n<li>The <strong>Last In, First Out<\/strong>, or LIFO method, on the other hand, will prioritize selling the last purchased or manufactured items first. Following the above logic, COGS will generally be higher with LIFO than with FIFO, leading to a relative decrease in net income over time.<\/li>\n\n\n\n<li>The <strong><a href=\"https:\/\/www.mrpeasy.com\/blog\/weighted-average-cost-wa\/\" target=\"_blank\" rel=\"noreferrer noopener\">Weighted Average<\/a><\/strong> or Average Cost method takes the average price of all stock items to account in the valuation of sold goods. This will have a stabilizing effect on COGS as raw material price hikes will not introduce cost discrepancies.<\/li>\n\n\n\n<li>Finally, the <strong><a href=\"https:\/\/www.mrpeasy.com\/blog\/specific-identification\/\" target=\"_blank\" rel=\"noreferrer noopener\">Specific Identification<\/a><\/strong> method uses the specific cost of each stock item to calculate the ending inventory value and thence, COGS, as precisely as possible.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">With the exception of Specific Identification, all of the abovementioned methods provide cost estimations for sold inventory. In theory, COGS should include the cost of all sold inventory. In practice, however, companies often do not know for sure which items specifically were sold during a financial period. Since COGS directly affects gross profit, manufacturers may prefer to use methods that return a lower COGS in order to report higher profits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Read more about <\/em><a href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Manufacturing Accounting<\/em><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_importance_of_COGS\"><\/span>The importance of COGS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In accounting, the Cost of Goods Sold is an expense appearing in the income statement. It is used to determine a company\u2019s gross profit by subtracting its value from total revenue. It is also needed for calculating a company\u2019s gross margin \u2013 the funds available to pay for fixed expenses and income tax, which in turn is required to determine a healthy markup. Gross margin is calculated by dividing gross profit by revenue. As the primary cost of doing business, COGS also informs net income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is important to bear in mind, however, that COGS does not come without its limitations. Since it is a complex calculation with many variables, errors in calculation or methodology may result in misstated net income and tax liability. It is also quite easy to manipulate by over-allocating factory overhead, failing to write off obsolete items, altering stock levels, etc. To avoid legal ramifications or unethical practices, what to include in COGS should be determined as precisely as possible.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Next, let us look at some of the prime reasons why keeping a close eye on COGS is a must for manufacturers.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Helps to set profitable pricing.<\/strong>&nbsp;In manufacturing, especially in complex workflows, costing each step of production can be a challenge.&nbsp;A wrong calculation can reduce the profitability of the set <a href=\"https:\/\/www.mrpeasy.com\/blog\/selling-price\/\" target=\"_blank\" rel=\"noreferrer noopener\">selling price<\/a>.&nbsp;Having&nbsp;in place accurate inventory&nbsp;counting and adhering to a strict COGS calculation can help determine which products may be priced too low or too high. This allows a company to set appropriate pricing.<\/li>\n\n\n\n<li><strong>Proper taxation.<\/strong>&nbsp;Since COGS is considered an expense, a larger COGS will result in a lower taxable income level.&nbsp;This is especially important for <a href=\"https:\/\/www.mrpeasy.com\/blog\/make-to-stock-mts-manufacturing-process-flow-and-best-practices\/\" target=\"_blank\" rel=\"noreferrer noopener\">make-to-stock<\/a> manufacturers who carry large finished goods inventories.&nbsp;In this situation, the year-end value of finished goods may be taxable as it is figured into COGS.&nbsp;Improper inventory practices could result in over- or under-taxation, opening the company to audits and potential fines.<\/li>\n\n\n\n<li><strong>Managing profitability.<\/strong>&nbsp;COGS can be tracked as a trend over longer time periods to gain insights into profitability. This is useful for management to make decisions on where and how to improve efficiency and improve inventory accuracy.&nbsp;It can also be used by in-house analysts to plan future strategies, as well as by investors looking for upward or downward trends in overall profitability.<\/li>\n<\/ul>\n\n\n<div class=\"banner-v2\">\n    <p class=\"banner-v2__desc\">Get a complete overview of your business with MRPeasy<\/p>\n    <a class=\"banner-v2__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_blue\">Try for free<\/a>\n<\/div>\t\t<style>.banner-v2 {\n    float: right;\n    display: flex;\n    flex-direction: column;\n    justify-content: center;\n    align-items: center;\n    padding: 40px 32px;\n    gap: 16px;\n    width: 356px;\n    height: 205px;\n    background: linear-gradient(199.68deg, #6084E5 13.17%, #5FA7DD 82.1%);\n    border-radius: 4px;\n    margin-left: 12px;\n    margin-bottom: 12px;\n    margin-top: 15px;\n}\n\n@media (max-width: 767.98px) {\n    .banner-v2 {\n         width: 100%;\n         height: 173px;\n         margin-bottom: 0;\n         margin-left: 0;\n    }\n}\n\n.single__content p.banner-v2__desc {\n    margin: 0 !important;\n}\n\np.banner-v2__desc {\n    width: 292px;\n    font-style: normal;\n    font-weight: 700;\n    font-size: 22px;\n    line-height: 29px !important;\n    text-align: center;\n    color: #FFFFFF;\n    margin: 0 !important;\n    order: 0 !important;\n}\n\n.single__content a.banner-v2__link {\n    color: #FFFFFF !important;\n}\n\n.single__content a.banner-v2__link:hover {\n    color: #003557 !important;\n}\n\na.banner-v2__link {\n    display: flex;\n    justify-content: center;\n    align-items: center;\n    width: 181px;\n    height: 51px;\n    padding: 18px 0;\n    border-radius: 4px;\n    background: #003557;\n    font-weight: 700;\n    font-size: 16px;\n    color: #FFFFFF !important;\n    text-decoration: none !important;\n    order: 1 !important;\n}\n\n.banner-v2__link:hover {\n    background: white;\n    color: #003557 !important;\n}<\/style>\n\t\t\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cost_Of_Goods_Sold_in_manufacturing_systems\"><\/span>Cost Of Goods Sold in manufacturing systems<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Whereas the Cost of Goods Sold equation is theoretically quite straightforward, ensuring precision can be challenging in practice. What to specifically include in manufacturing costs and factory overheads? Is the chosen inventory costing method applicable? Is WIP inventory accounted for accurately? Is the adopted accounting system taking all moving parts into consideration? These key aspects need to be double and triple-checked.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The importance of a well-implemented <a href=\"https:\/\/www.mrpeasy.com\/inventory-management-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory management system<\/a> cannot be overstated in addressing the above-mentioned issues and ensuring financial health and legal compliance for your company. Very small companies with limited manufacturing complexity might still make do with spreadsheets and periodic inventory systems for their cost accounting purposes. Dedicated inventory management systems or manufacturing ERPs, however, go far beyond simply keeping stock organized. These solutions utilize a <a href=\"https:\/\/www.mrpeasy.com\/blog\/perpetual-vs-periodic-inventory-system\/\" target=\"_blank\" rel=\"noreferrer noopener\">perpetual inventory system<\/a> and keep all stock movements and costs automatically synchronized from purchase orders all the way to shipping to customer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many of these software providers are tailor-made for the complex requirements of modern SME manufacturers, combining affordability with cutting-edge functionality. For example, with <a href=\"https:\/\/www.mrpeasy.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">MRPeasy<\/a>, accuracy in cost accounting is assured thanks to enhanced inventory and <a href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-traceability\/\" target=\"_blank\" rel=\"noreferrer noopener\">production tracking<\/a> tools, and <a href=\"https:\/\/www.mrpeasy.com\/blog\/procurement-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">procurement management<\/a> functionalities. A standard accounting module helps keep tabs on the books while seamless integrations with respected financials software like <a href=\"https:\/\/www.mrpeasy.com\/quickbooks\/\" target=\"_blank\" rel=\"noreferrer noopener\">QuickBooks<\/a> and <a href=\"https:\/\/www.mrpeasy.com\/xero\/\" target=\"_blank\" rel=\"noreferrer noopener\">Xero<\/a> make sure all finances are always under control.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Cost of Goods Sold (or COGS) is a financial metric that depicts the manufacturing or acquiring costs of all finished goods that were sold within a financial period.<\/li>\n\n\n\n<li>COGS is important for manufacturers and distributors in determining gross profit and gross margin, assigning a healthy markup, as well as leveraging net income.<\/li>\n\n\n\n<li>An accurate COGS calculation depends on consistent inventory management practices, efficient stock tracking, and adopting a suitable inventory valuation method.<\/li>\n\n\n\n<li>Due diligence needs to be exercised in allocating expenses into COGS, as inflating inventory costs or missteps in stock levels may result in financial difficulties or legal ramifications.<\/li>\n\n\n\n<li>While calculating and keeping track of COGS is theoretically possible with a pen-and-paper approach, it is hugely simplified by adopting a capable inventory management software solution.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em>You may also like: <\/em><a href=\"https:\/\/www.mrpeasy.com\/blog\/inventory-tracking\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Inventory Tracking \u2013 An Essential Guide for SMEs<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The many cost-oriented KPIs in manufacturing accounting constitute some of the most important financial metrics for manufacturers and distributors. In this post, we look at the function and relevance of one such KPI \u2013 the Cost of Goods Sold.<\/p>\n","protected":false},"author":9,"featured_media":13709,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[92],"tags":[75,3,8,4],"class_list":["post-2607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","tag-cogs","tag-manufacturing","tag-manufacturing-planning","tag-manufacturing-software"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Cost of Goods Sold in Manufacturing \u2013 How to Calculate COGS - MRPeasy<\/title>\n<meta name=\"description\" content=\"The Cost of Goods Sold is among the most important financial metrics in business. What is COGS and how to calculate it? Learn more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mrpeasy.com\/blog\/calculating-cost-of-goods-sold-in-manufacturing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cost of Goods Sold in Manufacturing \u2013 How to Calculate COGS - MRPeasy\" \/>\n<meta property=\"og:description\" content=\"The Cost of Goods Sold is among the most important financial metrics in business. What is COGS and how to calculate it? 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