Where does Cost of Goods Sold expense amount come from?

[stopattheoffice]

Is the Cost of Goods sold expense taken from the Product Cost in the Inventory?

[PrachiJoshi]

Yes, on first in first out basis.

[stopattheoffice]

Thank you for your reply. To clarify how the First in First Out works then, is the cost of goods sold expense coming from the first supplier invoice that paid for the inventory being sold? Or is the COGS expense coming from the Product and Services list, Purchasing Cost field? Thanks, Ruth