"ANNINMA1" asks: "Cost of Goods Sold: I know that this figure is derived from taking Beginning Inventory + Purchases - Ending Inventory. However, Which purchases do I include in that calculation? Obviously materials that directly go into my product for resale (paper, cloth, etc.), but what about those materials that are difficult to quantify: thread, glue, ink, paint, etc. Do those go into inventory, or somewhere else? Shipping charges: I order a lot of my supplies online, so there are shipping charges associated ... where does this go? Directly into the cost of the material, or somewhere else? I have a Dome Monthly Bookkeeping book, and it seems to separate those charges on another line, but it's not real clear."