According to the IRS in the following publication, "Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold. If they are not an integral part of the manufactured product, their costs are shipping or selling expenses".
However if you have packaging costs for shipping your merchandise, like shipping boxes and bubble wrap, tape, etc, that is part of shipping costs and not considered cost of goods sold.
@melody32
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
