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Answer Posted / h.r. sreepada bhagi
COGS for a Trading Company :- Value of Opening Stock +
Landed Cost of merchandise purchased - Value of Closing Stock
COGS for a Manufacturing Company :- Value of Opening Stock +
Landed Cost of Input materials(RM,PM, Consumables)purchased
+ Production Overheads(Expenses) - Value of Closing Stock.
production Overhead refers to manufacturing expenses or cost
of conversion of Raw Materials in to Salable Products.
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