Cost of goods sold accout + profit

Hi Experts,

We see the below journal after ship confirm.

Cost of Goods sold   Dr     with price defined in Price list.

            To Inventory Cr           with price defined in price list.

To the my best of knowledge, cost of goods sold means, it is a expenditure incurred to produce a product and profit should not be include on this.

But sales orders prices are defined in price list including profit and this is used while raising sales order.

Can you please tell me what is the price is used for cost of goods sold a/c and what price is used for creating invoice in AR through OM, is it including the profit %.