Components of Cost of Goods Sold

Cost of goods sold is comprised of raw material costs including inbound freight, duty
and non-recoverable taxes, inbound handling costs associated with the receipt of raw
materials, packaging materials, production costs including labor costs, maintenance and
utility costs, plant and engineering overhead, warehousing and outbound shipping costs
and handling costs. Inventory losses and provisions and the costs of customer claims
are also recognized in the cost of goods line item.