> Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.
So the $550 or $650 COGS includes the cost of labor for manufacturing, but excludes (say) marketing and auditing costs.
From https://www.investopedia.com/terms/c/cogs.asp
> Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.
So the $550 or $650 COGS includes the cost of labor for manufacturing, but excludes (say) marketing and auditing costs.