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The Royal GazetteGazette royaleFredericton New Brunswick Fredericton NouveauBrunswick ISSN 17149428Vol. 182329Wednesday, April 10, 2024 / Le Merced 10 April 2024Notice to Readers Avis aux lecteursThe
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Cost of Goods Sold (COGS) refers to the direct costs attributable to the production of the goods sold in a company. This includes the cost of materials and labor directly used to create the product.
Businesses that manufacture products or buy and sell goods are generally required to report COGS on their income tax returns.
To fill out COGS, businesses need to calculate the total cost of inventory at the beginning of the period, add purchases during the period, and subtract the value of inventory at the end of the period.
The purpose of COGS is to determine the profit of a business by calculating the direct costs of producing goods. It is a crucial component in understanding a company's financial performance.
Businesses must report the beginning inventory, purchases during the period, ending inventory, and the resulting COGS calculation on their financial statements.
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