So I got a task at hand to calculate COGS and Inventory Costs. COGS is pretty easy, since I can find the value of inventory at specific dates and the purchase amount... This question may seem pretty basic, so bear with me. I know if I take the inventory value, write downs over the year / depreciation / shrinkage will be included, so it goes into COGS. Problem is that I also have the total amount of write downs within the inventory costs, so it appears in two different measures. I am unsure in which measure I should remove write downs.