MG wrote:

- quote -

The former, $800. That's because she sold 100 units at a
unit cost of $8.

- quote -

If they went INTO the product, it's part of the cost of
goods, not an [indirect or overhead] expense.

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Please help

My wife has a small business (a losing business).

She wrote a book, printed 1000 copies in one shot in 2004
for $8000 or $8 each. She sold 100 books at $20 each.

When it comes to determine the price of goods sold is it
going to be

8x100=$800 because that is the fraction sold in 2004 or is
acceptable to say $8000 because that was paid in 2004

There are other expenses that relate directly to the
production of the books like the creation of artworks, are
they treated as cost of producing the good sold or are
treated as expenses?

Thanks

MG

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