COGS, you are adding value to the produce and creating a “manufactured” item AND produce would qualify to be countable inventory, which in and of itself qualifies as COGS

Resolution for 'countable inventory issue: 'We are a restaurant. Do I put Produce used to make sandwiches in Cost of goods sold or cost of sales?' available: Yes.

The countable inventory issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the countable inventory issue yourself by looking for a resolution described in the article. If it is a complex countable inventory issue or you are unable to solve the issue, you may contact us by clicking here or by using other countable inventory support options.

For more information about resolving issues related to countable inventory in Quickbooks/QBO or to get support for the issue 'We are a restaurant. Do I put Produce used to make sandwiches in Cost of goods sold or cost of sales?', click the link below: