How do I get wages to go to cost of goods sold instead of payroll expense in operating expenses?

Let's reclassify the Payroll Settings, usercrmjtm.

This way, you can change the wages to Cost of Goods Sold. I'll guide you how.

1. Go to the Gear icon and then choose Payroll Settings.
2. Select Accounting in the Preferences section
3. In the Wage Expense Accounts section, select I use different accounts for different groups of employees.
4. Choose the appropriate account (COGS) from the Wage Account drop-down menu for each employee.
5. Scroll down and click OK.
6. You'll be routed to the Account Preferences Summary page. 
7. From there, you're given the chance to update the existing transactions of your employees. 
8. Hit OK once the update is complete.

I'd also suggest consulting your accountant to guide you with the process to ensure everything is accurate. 

Moreover, I encourage running payroll reports in QuickBooks. This helps you keep track of your business and employees. 

In case you'll need assistance in dealing with payroll tasks, don't hesitate to get back on this thread. We're always here to help you.

I followed the steps and it did move the wages to cost of goods sold but now I have 2 cost of goods sold sections!

 Sales 
 Total Income 
 Cost of Goods Sold
 Cost of Goods Sold
 Supplies & materials 
 Total Cost of Goods Sold ******
 Direct Labor 
 Total Cost of Goods Sold $
 GROSS PROFIT $ 

I need to get rid of the Total Cost of Goods Sold that is under Supplies and Materials or move the Direct Labor up to the other part.  

Can you help?