Cost of goods professional photographer: overview of items?

[davido]

Besides photo albums, prints, flash drives... what else is considered cost of goods.  Photo paper? Ink to print photos? Photoshop software to edit the photo the client receives? Photo editing service that provides enhancements to photos? Website design? Memory card to take the photos? Hard drive to store the photos? Photographer we hire for just one job?

[LeeM]

First, all the items used are deduct in the same manner, it's just where you list them (in what category). 

Cost of goods are those items used to produce those goods. I usually think of the cost of the items you sell and never get back. For instance, the paper (you will never get back once sold), the ink (you use more than once to make many prints), Photoshop (you use more than once). I've listed the items above and where I would classify them. Hopefully that helps:

Cost of Goods-Photo Albums, Paper

Software - Photoshop

Supplies - flash drives, memory cards, hard drives

Contract Labor - photographer, photo editing service

Advertising - website design

[davido]

Thank you very much for your reply.  If I give a flash drive or Dvd with the clients photos to them, (and I never get it back), wouldn't that be part of "cost of goods"?  Or if a client does not want us to edit the photos but just wants the memory card - is that in that case then "cost of goods"? I understand the point of using photoshop but what about photo editing service for a specific job. If we hire a company to touch up just 5 specific photos for a client it is in my opinion producing the final product (photo).  In general can a service be considered "cost of good"? A different item: If I buy a sign "just married" to use at a photo shoot for a wedding couple is that "cost of good"?

[LeeM]

In total, it doesn't matter overall where you put it because it will all be deducted from your income. Typically, an artist/photographer would not really have a costs of goods sold but would simply expense the materials they used. Cost of Goods sold is typically thought of far say a shirt. The cost of goods sold would be the fabric and the labor only for the person who directly made the shirt.   
The cost of goods would not include the labor for the designers, the boxes the shirts are shipped in or the advertising expenses.
I would not consider a service a "cost of good" rather just a regular expense (be it advertising or just a miscellaneous expense).
The just married sign would be a basic material/supply expense since you'll probably use it over and over again.