Cost of goods sold (cogs) is what you purchased for resale during the year. Don't calculate cogs by taking the resale price. Cogs is your acquisition cost.
If you sold 10 widgets at 1.00 apiece, but bought 100 at .50 apiece, then
your beginning inventory would be 50.00,
your ending inventory would be 45.00,
your cogs would be 5.00 (10 widgets sold * .50 apiece bought).
