Cost of Goods refer to how much it costs you to acquired the specific product you are selling. 
 
For Example:
 
If a product costs:
  • $5 for supplies
  • $100 for production setup fee (per 100 quantity)
  • $10 shipping fee
 
The total cost of goods for a single unit of the product is $16. 
 
Cost of Goods = $5 + ($100/100) + $10 = $16