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Ordering Cost = 4 orders x $16 per order = $64 Also, in the case of EOQ: = 18 orders x $16 per order = $288 Average Inventory. Total Cost of Goods Sold = $1,386.10. (At Dec. 31 the ending inventory cost will be: 30 units at $12.78 = $383.40. This $383.40 plus the Cost of Goods Sold of $1,386.10 = $1,769.50 which is within $0.50 of the cost of goods available. This small difference is due to rounding the per unit costs to two decimal places.) Definition of cost of sales. Cost of sales (also known as "cost of goods sold") refers to the cost required to manufacture or purchase a product that is then sold to a customer. Essentially, the cost of sales refers to what the seller has to pay in order to create the product and get it into the hands of a paying customer. 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