In QuickBooks, the cost of goods sold (COGS) is considered to be the direct costs associated with the production of the goods or services that you sell. This would include the cost of materials and labor directly related to the production of your goods or services. COGS does not include indirect costs such as overhead expenses.
To calculate your COGS in Quickbooks, you will need to set up inventory items for each good or service that you sell and track the quantity on hand. When you make a sale, you will then need to select the appropriate inventory item and enter the quantity sold. QuickBooks will automatically calculate your COGS based on the information that you have entered.